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

25 Apr 2025   |   New York

Contacts

KBRA affirms the long-term rating of AA with a Stable Outlook for the City of Waterbury, CT (the "City") 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 and OPEB 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 ratings and relevant documents, click here.

Methodologies

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: 1009197