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KBRA Affirms Rating of A for City of Joliet, IL Waterworks and Sewerage System, Senior Lien Obligations

27 May 2026   |   New York

Contacts

KBRA affirms the long-term rating of A with a Stable Outlook for the City of Joliet, IL Waterworks Sewerage System, Senior Lien Obligations.

Key Credit Considerations

The rating action reflects the following key credit considerations:

Credit Positives

  • Joliet City Council maintains rate-setting autonomy and has demonstrated a willingness to increase rates to ramp up revenues in advance of and through the large capital program.
  • Historical financial results have been sound, with robust liquidity providing operational flexibility.
  • Comprehensive strategic capital planning process is addressing long-term water sustainability concerns.

Credit Challenges

  • WTSP and WMRP involve capital projects which are a substantial undertaking for the City. Additional cost escalation could represent a significant financial burden.
  • System leverage will increase considerably as capital needs associated with the projects are financed.
  • Substantial increases in 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, pressuring rates and rate affordability.
  • Sustained unfavorable financial operating results which pressure coverage or leverage to a level not supportive of the system’s current rating level.

To access ratings and relevant documents, click here.

Methodology

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015159