The Metropolitan Water Reclamation District of Greater Chicago (MWRD) continues to receive strong assessments for its financial strength and fiscal management after Fitch Ratings affirmed its AAA rating and S&P Global Ratings upheld its AA+ rating on the MWRD's general obligation bonds. Both agencies assigned stable outlooks to the MWRD.

The ratings arrive as the MWRD prepares to issue approximately $400 million in five series of 2026 general obligation bonds, including green bonds intended to support environmentally beneficial investments. Fitch assigned AAA ratings to all five series, while S&P assigned AA+ ratings to all five series. Fitch and S&P also affirmed their ratings on approximately $2.6 billion of MWRD's outstanding general obligation bonds.

“Maintaining strong credit ratings is a reflection of the MWRD's commitment to responsible financial management and long-term planning,” said MWRD President Kari K. Steele. “These ratings provide confidence in our financial strength as we continue investing in critical infrastructure that protects public health, strengthens our communities and safeguards the environment.”

Fitch affirmed the MWRD's AAA rating with a stable outlook. Fitch cited MWRD's “very strong” financial profile, revenue defensibility and operating risk profile. Fitch also noted the MWRD's low leverage and strong taxing ability. The MWRD’s main revenue source is property taxes in which a levy is placed across all property within the MWRD’s service area, which encompasses Chicago and 128 surrounding municipalities. Fitch noted the diversity of MWRD's tax base, with no single taxpayer accounting for more than one percent of the MWRD's estimated assessed valuation as of December 2024. 

S&P affirmed MWRD's AA+ rating with a stable outlook, citing the expectation that MWRD management will preserve its financial profile and maintain its strong financial and operational policies. S&P also identified the size, depth and diversity of MWRD's service area's economy and tax base as factors contributing to rating stability.

“Strong financial stewardship is essential to MWRD's ability to provide wastewater and stormwater services to approximately 5.2 million Cook County residents,” MWRD Finance Chairman Marcelino Garcia said. “As we plan for the MWRD's future infrastructure needs, maintaining our financial strength allows us to make critical investments while continuing to be responsible stewards of the resources entrusted to us.”

The 2026 bond issuance includes approximately $143.4 million in general obligation limited tax capital improvement green bonds, and approximately $13.5 million in general obligation unlimited tax green bonds, along with three series of refunding bonds. The bonds are expected to price during the week of Aug. 24 through a negotiated sale.

Strong credit ratings help MWRD maintain access to the capital markets and support the MWRD's ability to finance major infrastructure investments. MWRD's responsibilities include protecting public health and the environment through wastewater treatment, resource recovery, stormwater management and flood protection throughout Cook County.

MWRD's financial strength also supports its continued investment in projects that improve water quality, reduce flooding, expand green infrastructure and enhance the resilience of communities throughout the region. The MWRD is breaking ground this year on an estimated $389.9 million infrastructure upgrade at its O’Brien Water Reclamation Plant in Skokie to remove phosphorus through a biological process among other improvements that protect water quality downstream and meet stringent permits for phosphorus.

The MWRD operates on a $1.8 billion budget with a total property tax levy of $755.7 million. The MWRD serves 129 municipalities within an 882.1 square mile service area. The MWRD owns and operates seven water reclamation plants, 23 pumping stations, 560 miles of intercepting sewers, 110 miles of deep tunnel, three combined sewer reservoirs and 34 flood control reservoirs and has helped fund approximately 300 stormwater management projects that combined provide more than 1 billion gallons of storage capacity. 

Earlier this year the Government Finance Officers Association (GFOA) presented the MWRD with the Distinguished Budget Presentation Award for the 2025 Budget and Certificates of Achievement for Excellence in Financial Reporting to the MWRD, the MWRD Retirement Fund, and to the MWRD Retiree Health Care Trust for the 2024 fiscal year. This marks 50 consecutive years of the MWRD receiving the Certificate of Achievement for Excellence in Financial Reporting, putting the MWRD in the top two percent of governments receiving a consecutive award.