KBRA Assigns Long-Term Ratings of AA to Four Series of Chicago Park District General Obligation Bonds; Outlook is Positive
19 Sep 2023 | New York
KBRA assigns a long-term rating of AA with a Positive Outlook to the Chicago Park District General Obligation Limited Tax Park Bonds Series 2023B; General Obligation Limited Tax Refunding Bonds, Series 2023C; General Obligation Unlimited Tax Refunding Bonds, Series 2023D (Personal Property Replacement Tax Alternate Revenue Source); and General Obligation Unlimited Tax Bonds, Series 2023F (Harbor Facilities Revenues Alternate Revenue Source). Additionally, KBRA affirms the long-term rating of AA, and Positive Outlook, on the District’s outstanding General Obligation Bonds.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Strong financial condition as evidenced by stable and healthy levels of operating reserves.
- Strong leadership team with long-standing financial management policies and procedures for budgeting, forecasting, and operations management.
- Substantial tax base with deep and diverse economy that is coterminous with the City of Chicago.
Credit Challenges
- Relatively high debt burden both on a per capita basis and as a percentage of full market property valuation.
- Very low pension funded ratio at 31.5% as of FYE 2022.
Rating Sensitivities
For Upgrade
- Moderating debt metrics.
- Continuation of robust financial operations generating surpluses and increasing reserves.
For Downgrade
- Significant deterioration in the level of available fund balance and operating reserves.
To access rating and relevant documents, click here.