Press Release|Public Finance
KBRA Assigns AAA Rating to The County of Cook, Illinois Sales Tax Revenue Bonds, Series 2024; Affirms Rating for Parity Bonds
24 Jul 2024 | New York
KBRA assigns a long-term rating of AAA to The County of Cook, Illinois Sales Tax Revenue Bonds, Series 2024. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Sales Tax Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Pledged revenues, consisting of home rule sales taxes, provide robust debt service coverage.
- Strong bondholder protections, highlighted by a conservative non-impairment covenant (1.35x) and ABT (2.5x).
- Deep and diverse economic base underpinning the revenue pledge, with no concentration.
Credit Challenges
- Sales tax revenues, which encompass home rule sales taxes, are economically sensitive.
- The possibility, albeit remote, that the State could make statutory changes to reduce the home rule sales tax rate.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- While not expected, a prolonged and deep economic downturn that results in a severe long-term reduction in pledged revenues and/or a substantial increase in sales tax revenue debt.
- Action by the State or County to reduce home rule sales tax rate or limit revenue collections.
To access rating and relevant documents, click here.