Moody’s upgrades Chicago Public Schools; investment grade a notch away
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The Chicago Board of Education on Wednesday saw its issuer rating and debt ratings from Moody’s Investors Service upgraded a notch, to Ba1 from Ba2 — still speculative grade, but one level below investment-grade status. The rating outlook remains positive after the upgrade.
Moody’s cited improvements in Chicago Public Schools’ operating fund net cash balance, which went from under 5% of revenues in 2018 to 13% in 2023; improved cash flows, as seen in its reduced cash flow borrowing; and fixed cost ratio, which went down to roughly 20% of revenue, supported by revenue growth from increases in state aid and property tax receipts.
The district’s finances have benefited from the
Kroll Bond Rating Agency assigns BBB-plus and BBB ratings to the district’s unlimited tax general obligation bonds, with the higher rating on bonds supported by a special revenue bond legal opinion.
S&P Global Ratings
