KBRA Affirms AA- Rating and Stable Outlook for Metropolitan Pier and Exposition Authority, IL, McCormick Place Expansion Project Bonds
18 Jun 2026 | New York
KBRA affirms the long-term AA- rating for the Metropolitan Pier and Exposition Authority (the Authority), IL, McCormick Place Expansion Project Bonds. The Outlook is Stable.
The Bonds are secured by a pledge of Authority Tax revenues, which consist of a 1% food and beverage tax levied in the Chicago central business area and at Chicago-Midway and Chicago-O’Hare International Airports, a 2.5% hotel tax collected city-wide, a 6% rental car tax collected throughout Cook County, and airport ground transportation departure taxes levied at the two airports. The Bonds are additionally secured by a maximum draw of $300 million (rises to $450 million in 2036) on State sales tax receipts, subject to a prior lien on the State’s outstanding Build Illinois Bonds, which are utilized to offset deficiencies in Authority tax revenue.
Key Credit Considerations
Credit Positives
- State sales tax revenue support for bond repayment offsets cyclical vulnerability of Authority tax revenues.
- Bond security features strong State non-impairment language.
- Expansive state-wide sales tax base provides extraordinary coverage of more than 25x maximum permissible debt service.
- State appropriation actions in support of MPEA underscore the importance of McCormick Place to regional and state economy.
Credit Challenges
- Authority tax revenues are cyclically sensitive.
- Determination to match Authority tax revenues with annual debt service requirements, and minimize application of State sales tax revenues, may necessitate continued debt restructuring.
- Vulnerability of State appropriation dependent payment mechanism underscored by absence of timely action in 2015.
Rating Sensitivities
For Upgrade
- Growth in Authority tax revenues to a level sufficient to provide ample coverage of debt service requirements, obviating the need for either draws on the State sales tax or periodic debt restructuring.
For Downgrade
- Failure of State to appropriate funds for payment of debt service.
- Underperformance of Authority taxes resulting in an increased reliance on state resources.
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