City of Waterloo in Solid Financial Position

The City of Waterloo maintains a solid financial position bolstered by a growing economic base, according to Moody’s Investor Service latest analysis. Financial reserves will remain strong overall even with a small deficit expected in fiscal 2024.

This week, Moody's Ratings assigned a Aa2 rating to the City’s General Obligation Capital Loan Notes, Series 2024B, Taxable General Obligation Capital Loan Notes, Series 2024C, and General Obligation Capital Loan Notes, Series 2024D, likely to collectively carry a par value of about $26 million.

The Aa2 issuer rating reflects the city's very strong financial position, with cash representing about 89% of revenue in 2023. The available fund balance ratio is only about 31%, however, because much of the city's cash is restricted for various items, including street maintenance, self-funded insurance, housing, and tourism promotion.

While resident incomes and full value per capita trail peer medians, the city serves as a regional hub and benefits from significant ongoing development. Leverage will remain in line with peers even with additional borrowing plans.

To access the full report: Waterloo (City of) IA | Reports | Moody's (