KBRA Affirms Rating for City of Waterbury (CT) General Obligation Bonds at AA, Stable Outlook

25 Apr 2025 | New York

KBRA affirms the long-term rating of AA with a Stable Outlook for the City of Waterbury, CT (the "City") General Obligation Bonds.

The rating was affirmed because of the following key credit considerations:

Credit Positives

Local economy continues to undergo significant reinvestment and development.
Financial performance is sound with a consistent trend of balanced general fund operations and modestly growing general fund reserves supported by the City’s strong financial management policies and procedures.
Requirement to fully fund actuarially determined pension contribution, as per state statute authorizing the 2009 pension obligation bonds.

Credit Challenges

Elevated unemployment and poverty rates, and low per capita incomes.
Moderate debt burden with high, but manageable pension and OPEB related obligations.

For Upgrade

Material growth in per capita income and reductions in poverty and unemployment levels.

For Downgrade

Deterioration in the City’s debt metrics or general fund reserves.
Failure to comply with the City’s fiscal management policies and procedures.
Significant decline in socioeconomic indicators (unemployment, poverty, and per capita income).

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