Mayor Brandon Johnson Announces the Upgrade of Chicago’s Ratings by Fitch Ratings, Inc.
illi News/10273995

Trending...
CHICAGO ~ Chicago Mayor Announces Upgraded Bond Ratings for City's General Obligation and Sales Tax Securitization Corporation

Chicago Mayor Brandon Johnson has announced that Fitch Ratings, Inc. has upgraded the City of Chicago's General Obligation (GO) rating to 'A-' from 'BBB+' and the Chicago Sales Tax Securitization Corporation's (STSC) senior lien bonds to 'AAA' from 'AA+'. The ratings agency has also maintained a Stable outlook for both STSC and GO.

According to Mayor Johnson, this upgrade is a recognition of the city's commitment to responsible fiscal management and its strong economic strength. He stated, "We are appreciative that Fitch Ratings has increased the City's rating on our bonds, which we use to fund needed investments in our infrastructure. These rating upgrades recognize our commitment to responsible fiscal management and the economic strength and vitality of Chicago."

The upgrades were made under Fitch's new U.S. Public Finance Local Government Rating Criteria. The agency cited the city's adherence to sound fiscal practices and its commitment to solving budget gaps through structural solutions as contributing factors. Additionally, Fitch noted that Chicago's demographic and economic profile remain an asset, with a sufficient population size and diversified economy that qualifies for their highest overall size/diversification category.

More on illi News
Jill Jaworski, Chief Financial Officer for the city, believes that this upgrade is long overdue. She stated, "For years, we have believed that rating agencies undervalue the strength and potential of Chicago." Jaworski also noted that the new criteria used by Fitch now recognize Chicago's financial resilience and resources derived from its large and diversified local economy.

The improved bond ratings will lead to lower borrowing costs for the city and broaden the pool of investors in its bonds. This will result in savings for the city, which can then be used to further invest in important programs such as education, public safety, and infrastructure. With a stronger financial position, the City of Chicago can enhance these services and improve the overall quality of life for all its residents.

Mayor Johnson and his administration are committed to building a stronger and more resilient Chicago for all its residents. This upgrade in bond ratings is a testament to their hard work and dedication to responsible fiscal management. The city's improved financial position will not only benefit its residents but also attract more investors and businesses, further strengthening Chicago's economy.

Filed Under: Government, City

Show All News | Report Violation

0 Comments

Latest on illi News