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Chicago General Obligation Bonds See First Rating Upgrade in Years
Fitch Ratings upgraded its long-term ratings for the City of Chicago’s General Obligation Bonds (GO) for the first time in nearly 13 years, from “BBB-” to “BBB” with a positive outlook. The positive outlook suggests potential for further upgrades over the next one-to-two-year period. Irt’s the first upgrade for Chicago GO bonds based solely on the city’s improved financial performance.
“The city has cleared major deferred liabilities, including pensions, debt, and capital maintenance; created $3 billion of new financial value for the city through new water supply contracts and a new casino; and made $6 billion in investments in the City of Chicago,” said Chicago CFO Jennie Huang Bennett. “All of this was done in the last three years in the midst of a pandemic.”
In a separate commentary, S&P cited the city’s success in balancing the budget without “the one-time solutions and scoop-and-toss refundings” of the past.
- ◦Financing
