Chicago won its first upgrade from Fitch Ratings Inc. in more than a decade, a sign that the Windy City is finally starting to turn its beleaguered finances around.
Fitch boosted Chicago’s debt ratings to two notches above junk on Friday, citing the city’s improved financial position and increased payments into its pensions. It also held a positive outlook, suggesting that more upgrades could come in the next year or two, Mayor Lori Lightfoot’s office said in a statement.
Chicago’s severely underfunded pensions have dragged down its credit for years as officials work to close persistent funding gaps. The Windy City paid required contributions to all four pension funds for the first time ever in 2022, and Fitch’s upgrade will give Lightfoot a boost as she seeks to sell bonds next month.
