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

Chicago Public Schools Now Have a Junk Credit Rating. What’s Next?
ChicagoPhotographer/Shutterstock
Thomas Savidge
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Commentary
On Aug. 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 and Fitch Ratings.
Thomas Savidge
Thomas Savidge
Author
Thomas Savidge is a research fellow at the American Institute for Economic Research (AIER). He earned his Master in Public Policy from George Mason University and a Bachelor of Arts in Political Science and Philosophy from SUNY New Paltz. Prior to joining AIER, Mr. Savidge served as the research director of the Center for State Fiscal Reform at the American Legislative Exchange Council (ALEC), and worked with the Charles Koch Foundation, the Mercatus Center at George Mason University, and the Empire Center for Public Policy.