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.
More about the Foxconn Facility
- Foxconn Will Make 10K Ventilators - Corri Hess - Jun 19th, 2020
- Medtronic and Foxconn Partner to Increase Ventilator Production - Foxconn Technology Group - Jun 18th, 2020
- Foxconn Audit Delayed Two Months - Erik Gunn - Jun 3rd, 2020
- Back in the News: Foxconn’s Profits Plunge By 90% - Bruce Murphy - May 19th, 2020
- Foxconn to Assemble Procedural Masks in Wisconsin for Pandemic Relief - Foxconn Technology Group - Apr 20th, 2020
- Murphy’s Law: Foxconn Squeezes Evers - Bruce Murphy - Apr 15th, 2020
- Foxconn Says It Earned Tax Credits - Corri Hess - Apr 9th, 2020
- Back in the News: Foxconn Plant Will Make Ventilators - Bruce Murphy - Apr 8th, 2020
- Op Ed: Foxconn Facility Could Help in Pandemic - James Rowen - Mar 29th, 2020
- Op Ed: The Foxconn Road to Ruin - James Rowen - Mar 9th, 2020
Read more about Foxconn Facility here
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