CHICAGO (WBBM NEWSRADIO) - One of the rating agencies has downgraded the City of Chicago’s credit, pointing to issues with this year’s budget.
An analyst for S&P Global said the budget the City Council passed a month ago failed to address long-standing problems and left a sizable structural imbalance that the agency expects will make balancing future budgets more challenging.
The downgrade comes after the agency put the City’s general obligation debt on a credit watch in November and means it’s likely to cost more for Chicago to borrow money for projects.
Mayor Brandon Johnson’s administration responded, saying the rating does not accurately reflect the City’s ability to meet its obligations or its growing labor force.
Johnson vowed to meet those challenges head-on and said the report does not accurately reflect the steps his administration has taken to address legacy issues.
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