Chicago’s Credit Rating Risks Cut From S&P Amid Budget Woes (1)

Chicago’scredit rating is at risk as Mayor Brandon Johnson and the city council spar over how to close a nearly $1 billion deficit in next year’s budget.

S&P Global Ratings late Tuesday put the city on “CreditWatch with negative implications” as officials mull one-time measures to close the shortfall. While the firm affirmed its BBB+ rating, analysts see at least a one-in-two chance of a cut in the next three months. A downgrade hinges on the 2025 budget passage and whether the gap is closed with one-time fixes rather than structural changes, Scott Nees, an S&P credit analyst, said ...