Moody's Public Finance Department Rating News; WALWORTH COUNTY, WISCONSIN RATING UNDER REVIEW FOR POSSIBLE DOWNGRADE; Investment Portfolio Losses Cited

Business Wire, Dec 9, 1994

NEW YORK--(BUSINESS WIRE)--Dec. 9, 1994- Moody's Investors Service has placed the Aa rating for Walworth County, Wisconsin under review for a possible downgrade after learning of serious realized and unrealized investment losses. The losses relate to collateralized mortgage obligations which have lost market value as interest rates have risen in recent months.

According to information recently received, the county sustained a loss of approximately $820,000 when certain of these securities were liquidated several months ago. Although definitive information is not yet available, it appears that the county's portfolio has further significant unrealized losses.

We are awaiting information from the county which will allow us to assess the impact on the county's liquidity and its overall financial position. Once we have had an opportunity to review this information, we will take appropriate rating action.

CONTACT: Arlene Bohner

             Senior Analyst
             212/553-4173
                   or
             Diane Schenkman
             Vice President and Manager
             212/553-0579