NEW YORK--(BUSINESS WIRE)--On May 16, 2018, Kroll Bond Rating Agency (KBRA) assigned a BBB rating and Positive Outlook on the Board of Education of the City of Chicago’s Unlimited Tax General Obligation Refunding Bonds (Dedicated Revenues), Series 2018A and B. KBRA has also affirmed the BBB rating and Positive outlook for the outstanding Unlimited Tax General Obligation Bonds (Dedicated Revenues) ratings for Series 2016A&B and Series 2017BCDEFG&H. KBRA has also affirmed a BBB- rating and Positive Outlook to the Board’s outstanding Unlimited Tax General Obligation Bonds (Dedicated Revenues).
This rating is based on KBRA’s U.S. Local Government General Obligation Rating Methodology. KBRA’s rating evaluation of the long-term credit quality of local government general obligation bonds focuses on four key Rating Determinants:
• Governance, Management Structure and Policies
• Municipal Resource Base
• Debt and Additional Continuing Obligations
• Financial Performance and Liquidity Position
In addition to the four key Rating Determinants identified in KBRA’s methodology, the BBB rating with a Positive Outlook on the Series 2018A and Series 2018B and Series 2016A&B and Series 2017BCDEFG&H Bonds also reflects KBRA’s understanding, based on consultation with KBRA’s external counsel, that, in the event that pledged State Aid revenues were insufficient, the pledged property tax revenues that would be collected and deposited to pay the above-mentioned Bonds under the Alternate Revenue structure would likely be treated as special revenues in a Chapter 9 proceeding. We make the rating distinction based on the special revenue opinion.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.