Press Release|Public Finance
KBRA Affirms AA Rating and Revises Outlook to Stable for Chicago Park District General Obligation Bonds
27 Mar 2025 | New York
KBRA affirms the long-term rating of AA for the Chicago Park District General Obligation Bonds. The rating Outlook is revised to Stable, from Positive.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Strong financial condition as evidenced by stable and healthy levels of operating reserves.
- 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
- High fixed cost burden both on a per capita basis and as a percentage of full market property valuation.
- Very low pension funded ratio at 33.3% as of FYE 2023.
Rating Sensitivities
For Upgrade
- Significantly improved debt and pension metrics.
- Continuation of robust financial operations generating surpluses and increasing reserves while incorporating pension expenditures
For Downgrade
- Significant deterioration in the level of available fund balance and operating reserves.
- Material increases in debt.Disruption to the availability of revenue generating District assets.
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