Chicago and Illinois’ prospects brighten; US public finance sector proves durable

Moody's Talks - Muniland

David Levett and Ted Hampton of the US Public Finance team delve into Chicago and the State of Illinois’ improved prospects despite heavy pension obligations. Also, Sarah Jensen and Al Medioli discuss the lack of pandemic-driven defaults among US public finance credits we rate.

Inside this episode:

• David Levett and Ted Hampton of the US Public Finance team delve into Chicago and the State of Illinois’ improved prospects despite heavy pension obligations. (begins at 1:29 mins)
• Sarah Jensen and Al Medioli discuss the lack of pandemic-driven defaults among US public finance credits we rate. (begins at 8:43 mins)

Related content:

• Chicago (City of) IL: Update to credit analysis following revision of outlook to stable - Our credit view incorporating the city's healthy liquidity, massive economy, very high leverage and recovering revenue.
• Chicago (City of) IL: Political will to raise revenue, use of federal aid and state actions will drive financial trajectory - Chicago's credit trajectory will be influenced by political will to raise revenue, its use of federal aid and actions taken by the State of Illinois.
• Local Government – US: Falling rents, remote work uncertainty will hit property tax revenue in some big cities - Office vacancy is rising and rents are falling, which will likely weaken assessed valuation and have varying property tax revenue implications for five large cities.
• Illinois (State of): Update to credit analysis following upgrade to Baa2 - Our credit view of Illinois, reflecting its sovereign powers over revenue and spending, offset by its very large unfunded pension liabilities that remain on an upward trajectory.
• US Public Finance: US municipal bond defaults and recoveries, 1970-2020 - This study updates our findings concerning the default, loss and rating transition experience of US municipal bond issuers from 1970 to 2020.