Chicago Public Schools got more good credit news Friday when Fitch Ratings raised its outlook on the district’s $7 billion of BB-minus general obligation debt to positive from stable.
The outlook revision reflects the district’s “progress towards structural balance as evidenced by the inclusion of improved school funding in the state's fiscal 2018 and 2019 budgets, the projected restoration of positive reserves in fiscal 2018, and an improved liquidity position leading to lower levels of cash flow borrowing,” Fitch said.
Despite a series of upgrades and improved outlook actions over the last year, the district remains rated at junk levels by Fitch, Moody’s Investors Service, and S&P Global Ratings. Kroll Bond Rating Agency has it at a low investment grade level.
