Press Release|Public Finance

KBRA Affirms Ratings for City of Joliet, IL - Waterworks and Sewerage Senior Lien WIFIA Loans and Revenue BANs; Outlook Remains Stable

15 Mar 2024   |   New York


KBRA affirms the long-term rating of A with a Stable Outlook for the City of Joliet, IL (the "City") senior lien WIFIA Loans and the short-term rating of K1 for the City’s senior lien Waterworks and Sewerage Revenue Bond Anticipation Notes (BANs).

Key Credit Considerations

The ratings were affirmed because of the following key credit considerations:

Credit Positives

  • Joliet City Council maintains full autonomy to set rates and has demonstrated willingness to increase rates to ramp up revenues in anticipation of large capital program.
  • Historical financial results have been adequate, and liquidity is robust providing operational flexibility.
  • Comprehensive strategic capital planning process to address long-term water sustainability concerns.

Credit Challenges

  • The Alternative Water Source and Water Main Replacement Programs involve capital projects which are a substantial undertaking for the City. Additional cost escalation could represent a significant financial burden.
  • The City's Waterworks and Sewerage System leverage will increase considerably as capital needs associated with the projects are financed.
  • Substantial increase in water and sewer rates may pressure affordability over the longer-term.

Rating Sensitivities

For Upgrade

  • Sustained financial operating results significantly above projections.

For Downgrade

  • Project cost overruns or scope changes that result in a significant financial burden.
  • Sustained unfavorable financial operating results which pressure coverage or leverage to a level not supportive of the system’s current rating level.

To access rating and relevant documents, click here.



A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003560

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