Press Release|Public Finance

KBRA Affirms BBB+ Rating for Board of Education of the City of Chicago, Dedicated Capital Improvement Tax Bonds; Outlook is Stable

15 Feb 2024   |   New York


KBRA affirms the long-term rating of BBB+ with a Stable Outlook for the Board of Education of the City of Chicago, IL Dedicated Capital Improvement Tax ("CIT") Bonds.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Under the CIT Act, a dedicated property tax levy is authorized for payment of CIT bonds.
  • Under the Indenture, the Board covenants to extend the CIT levy in an amount sufficient to provide at least 1.10x annual debt service in every year.
  • The Board’s strengthened financial position as well as the Consolidated Debt Service Reserve Fund, which provides additional debt service coverage.

Credit Challenges

  • The nexus between Chicago Public Schools ("CPS") and the CIT Bonds, as KBRA believes the credit position of the CIT Bonds is tied to the overall credit position of CPS.

Rating Sensitivities

For upgrade

  • Improved credit profile of the CPS, as KBRA believes there is a nexus between this credit and the CPS, as they both share the same management team and resource base.

For downgrade

  • Declining credit profile of CPS.
  • Draws on Consolidated Debt Service Reserve Fund without replenishment.

To access rating and relevant documents, click here.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003263

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.