KBRA Assigns Long-Term Ratings of AA to Three Series of Chicago Park District General Obligation Bonds; Outlook is Positive
28 March 2024 - 11:03PM
Business Wire
KBRA assigns a long-term rating of AA with a Positive Outlook to
the Chicago Park District General Obligation Limited Tax Park Bonds
Series 2024A; General Obligation Limited Tax Refunding Bonds,
Series 2024B; and General Obligation Unlimited Tax Bonds, Series
2024E (Special Recreation Activity Alternate Revenue Source).
Additionally, KBRA affirms the long-term rating of AA, and Positive
Outlook, on the District’s outstanding General Obligation
Bonds.
Key Credit Considerations
The rating actions reflect the following key credit
considerations:
Credit Positives
- Strong financial condition as evidenced by stable and healthy
levels of operating reserves.
- Strong leadership team with 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
- Relatively high debt burden both on a per capita basis and as a
percentage of full market property valuation.
- Very low pension funded ratio at 32.1% as of FYE 2022.
Rating Sensitivities
For Upgrade
- Moderating debt metrics.
- Continuation of robust financial operations generating
surpluses and increasing reserves.
For Downgrade
- Significant deterioration in the level of available fund
balance and operating reserves.
To access rating 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) 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: 1003715
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Analytical Contacts
Harvey Zachem, Managing Director (Lead Analyst) +1 646-731-2385
harvey.zachem@kbra.com
Michael Taylor, Senior Director +1 646-731-3357
michael.taylor@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com