S&P Hoists Joliet to AA

Standard & Poor’s has raised Joliet’s underlying rating on $74 million of outstanding debt one notch to AA in recognition of the city’s maintenance of strong financial operations and reserves.

The rating is further supported by a stable local economy that benefits from its participation in the Chicago metropolitan area, adequate income levels, and moderate debt burden. Offsetting some of the strengths are the city budget’s reliance on economically sensitive revenues.

“We expect that the city will maintain strong financial operations and sound reserve levels, particularly given its reliance on gaming revenues,” said Standard & Poor’s analyst Helen Samuelson.

The city of about 141,000 is located about 40 miles southwest of Chicago.

With a reliance on gaming revenues, city coffers are expected to suffer following a fire last week that has temporarily shuttered the Empress Casino. The fire struck the casino’s pavilion area that includes shops and banquet rooms but the gaming hall was not damaged. It’s not yet clear how long repairs will take.

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