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

Contacts

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.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1008839

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