Press Release|Public Finance
KBRA Affirms AA Rating for City of Waterbury, CT General Obligation Bonds; Outlook is Stable
25 Apr 2024 | New York
KBRA Affirms AA Rating with Stable Outlook for the City of Waterbury, CT General Obligation Bonds.
Key Credit Considerations
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-related obligations.
Rating Sensitivities
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).
To access rating and relevant documents, click here.