Chicago Public Schools Now Have a Junk Credit Rating. What’s Next?

Chicago Public Schools Now Have a Junk Credit Rating. What’s Next?

On August 28, 2025, Chicago Public Schools (CPS), the fourth-largest school district in the US, passed a $10.2 billion budget and is facing a $743 million deficit. Prior to the budget passage, the big three credit rating agencies each rated CPS General Obligation (GO) Bonds “non-investment grade speculative,” also known by the more pejorative title “junk bonds.” CPS bonds received a Ba1 rating from Moody’s and a BB+ rating from both S&P Global a…