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S&P Upgrades Chicago’s Outlook, Joining Three Other Rating Agencies
Standard & Poor’s (S&P) Global Ratings has upgraded its outlook to “stable” from “negative” and has assigned its ‘BBB+’ long-term rating to the City of Chicago. This news follows enactment of the 2022 Budget Plan and comes on the heels of an upgrade of the city’s outlook to stable by Fitch last month, and by Kroll and Moody’s this past summer.
“The 2022 Budget is a reflection of the tremendous work that the city’s finance and budget team has done over the years to help our city reach structural balance,” said Mayor Lori Lightfoot. “We expect to reach structural balance by 2023, which bodes well for our prosperous, post-pandemic recovery.”
S&P said the city has developed a “credible path to structural balance” which includes phasing out major one-time revenue sources after 2022, identifying new revenue sources, and climbing a pension contribution increase of $1 billion over the past three years.
- ◦Financing
- ◦Policy/Gov't
