Key Rating Factors
Credit context and assumption | Base-case expectations |
We expect institutions and the economy will remain supportive.
| Sound budgetary performance will continue to assist in maintaining minimal debt.
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Outlook
The stable outlook reflects our expectations that, in the next two years, Windsor's prudent and forward-looking financial management practices will support the city's strong budgetary results. We also expect the city will maintain a robust liquidity position as it continues to pay down its tax-supported debt burden.
Downside scenario
Although we view it as unlikely in the next two years, deterioration in budgetary results, such that after-capital deficits average more than 5% of total revenues on a sustained basis, leading to reduced internal resources and increased reliance on debt funding for capital bringing the debt burden closer to 30% of operating revenues, could result in a negative rating action.
Upside scenario
We could raise the rating in the next two years if the management team continues to take the necessary revenue measures to meet the city's funding needs, paired with a reduction in concentration of the economy.