KBRA Assigns AAA Rating to The County of Cook, Illinois Sales Tax Revenue Bonds, Series 2024; Affirms Rating for Parity Bonds
July 24 2024 - 7:52PM
Business Wire
KBRA assigns a long-term rating of AAA to The County of Cook,
Illinois Sales Tax Revenue Bonds, Series 2024. KBRA additionally
affirms the long-term rating of AAA for the County's outstanding
Sales Tax Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit
considerations:
Credit Positives
- Pledged revenues, consisting of home rule sales taxes, provide
robust debt service coverage.
- Strong bondholder protections, highlighted by a conservative
non-impairment covenant (1.35x) and ABT (2.5x).
- Deep and diverse economic base underpinning the revenue pledge,
with no concentration.
Credit Challenges
- Sales tax revenues, which encompass home rule sales taxes, are
economically sensitive.
- The possibility, albeit remote, that the State could make
statutory changes to reduce the home rule sales tax rate.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- While not expected, a prolonged and deep economic downturn that
results in a severe long-term reduction in pledged revenues and/or
a substantial increase in sales tax revenue debt.
- Action by the State or County to reduce home rule sales tax
rate or limit revenue collections.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. Special Tax Revenue Bond Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005241
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Analytical Contacts
Peter Scherer, Senior Director (Lead Analyst) +1 646-731-2325
peter.scherer@kbra.com
Joanne Ferrigan, Senior Director +1 646-731-1455
joanne.ferrigan@kbra.com
Douglas Kilcommons, Managing Director +1 646-731-3341
douglas.kilcommons@kbra.com
Harvey Zachem, Managing Director (Rating Committee Chair) +1
646-731-2385 harvey.zachem@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com