City of Waterloo in Solid Financial Position

(Waterloo, Iowa 4.13.2023) – Moody's Investors Service has assigned a Aa2 rating to the City of Waterloo's $6 million General Obligation Bonds, Series 2023A. Moody's maintains the city's Aa2 issuer rating and the Aa2 rating on its outstanding general obligation unlimited tax (GOULT) debt. Following the sale on April 18, the city will have approximately $123 million in GOULT debt.

The Aa2 issuer rating reflects the city's solid financial position, moderate leverage and modest fixed costs. The GOULT rating is the same as the issuer rating, based on the city's full faith and credit pledge with authority to raise ad valorem property taxes unlimited as to rate or amount.

“We are pleased to maintain this Aa2 rating, especially in light of all the major infrastructure projects underway to create a city of tomorrow today. This rating further proves the City’s commitment to fiscal responsibility and sound business practices,” says Mayor Quentin Hart.

This is the fourteenth year the City of Waterloo has maintained its bond rating at Aa2. This designation indicates that the City’s bonds are ranked in the high range of the upper-medium-grade category. The bond rating helps potential investors to determine the risk they take if they choose to invest in City bonds.

The principal methodology used in this rating was US Cities and Counties Methodology published in November 2022 and available at https://ratings.moodys.com/api/rmcdocuments/386953. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.