KBRA Affirms AAA Rating for The County of Cook, Illinois Sales Tax Revenue Bonds

23 Jul 2025 | New York

KBRA affirms the long-term rating of AAA with a Stable Outlook for the County of Cook, Illinois Sales Tax Revenue Bonds.

The County expects to issue additional debt later in 2025. In conjunction with such issuance, KBRA will publish a Rating Report.

The rating is affirmed because of 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.

For Upgrade

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 ratings and relevant documents, click here.