A debt-rating agency gave a high rating to debt the city of Waterbury plans to issue to narrow the unfunded liability gap in its pension fund.
Fitch Ratings assigned an A- rating to Waterbury’s $313 million of taxable general obligation pension bonds, series 2009. The bonds are scheduled to price on Wednesday.
The bond proceeds will raise the funded portion of the city’s pension to 70 percent from 13 percent, as of July 1, 2008. The city’s pension and other post-employment benefits liabilities total $961 million, Fitch said.
The rating agency also affirmed it’s A- rating on $78.4 million of general obligation bonds, and AA- on $40.5 million of outstanding special capital reserve bonds.
