KBRA Assigns AA Rating to Chicago Park District, IL General Obligation Limited Tax Park Bonds, Series 2025A and General Obligation Limited Tax Refunding Bonds, Series 2025B

NEW YORK--(BUSINESS WIRE)-- KBRA assigns a long-term rating of AA to the Chicago Park District, IL General Obligation Limited Tax Park Bonds, Series 2025A and General Obligation Limited Tax Refunding Bonds, Series 2025B. KBRA additionally affirms the long-term rating of AA for the District's outstanding general obligation bonds. The rating Outlook is Stable.

Key Credit Considerations

The rating action reflects the following key credit considerations:

Credit Positives

• Strong financial condition 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, and a deep and diverse economic resource base coterminous with the City of Chicago.

Credit Challenges

• Elevated 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 FY 2024.

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

• Disruption to the availability of revenue generating District assets, including the inability to replace potential lost revenue from the Bears relocation from Soldier Field.
• Significant deterioration in the level of available fund balance and operating reserves.
• Material increases in debt that would pressure capacity under the Debt Service Extension Base.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. Local Government General Obligation Rating Methodology
• ESG Global Rating Methodology

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: 1011946

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Source: Kroll Bond Rating Agency, LLC