The Foxconn Effect: Mount Pleasant Bond Rating Downgraded
The experts agree: the Foxconn deal is on shaky ground and that is bad news for taxpayers.
Design for Foxconn’s campus. Photo from the WEDC.
Today, The Daily Reporter reported that Moody’s Credit Agency has downgraded Mount Pleasant’s credit rating. The reasoning? Foxconn.
From the report:
Mount Pleasant’s millions in borrowing to support the construction of Foxconn Technology Group’s $10 billion factory there have led to a one-notch downgrade in the village’s credit rating over fears that the massive factory may not produce the economic benefits officials had promised.
And here is Moody’s analysis.
The downgrade to Aa3 largely reflects current and anticipated growth in the village’s direct debt burden and likely growth in its overlapping debt burden tied to borrowing in support of the Foxconn development. The rating also incorporates additional risks associated with the project including the uncertainty of enforceability of guarantee provisions in the event of a breach of development obligations.
The experts agree: the Foxconn deal is on shaky ground and that is bad news for taxpayers.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
More about the Foxconn Facility
- With 1,114 Employees, Foxconn Earns $9 Million in Tax Credits - Joe Schulz - Dec 13th, 2024
- Mount Pleasant, Racine in Legal Battle Over Water After Foxconn Failure - Evan Casey - Sep 18th, 2024
- Biden Hails ‘Transformative’ Microsoft Project in Mount Pleasant - Sophie Bolich - May 8th, 2024
- Microsoft’s Wisconsin Data Center Now A $3.3 Billion Project - Jeramey Jannene - May 8th, 2024
- We Energies Will Spend $335 Million on Microsoft Development - Evan Casey - Mar 6th, 2024
- Foxconn Will Get State Subsidy For 2022 - Joe Schulz - Dec 11th, 2023
- Mount Pleasant Approves Microsoft Deal on Foxconn Land - Evan Casey - Nov 28th, 2023
- Mount Pleasant Deal With Microsoft Has No Public Subsidies - Evan Casey - Nov 14th, 2023
- Microsoft, State Announce Massive Data Center Expansion, Land Purchase - Joe Schulz - Nov 11th, 2023
- Gov. Evers Announces Microsoft Makes Major Investment in Wisconsin - Gov. Tony Evers - Nov 10th, 2023
Read more about Foxconn Facility here
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