Takeaways:
- S&P Global Ratings warns that a new law aimed at raising pension benefits for some Chicago police and firefighters risks further straining the city’s finances.
- The new law is expected to add more than $11.6 billion to Chicago’s long-term net pension liability, according to city estimates cited by S&P.
- S&P analysts state that the prognosis for Chicago’s long-term fiscal health has weakened, and that substantial budget-balancing measures will be integral to the city’s credit stability.
A new law aimed at raising pension benefits for some Chicago police and firefighters risks further straining the city’s finances, according to S&P Global Ratings.
S&P’s warning, issued on Monday, comes nearly seven months after the firm cut the city’s credit rating by one notch to BBB with a stable outlook. The latest report, which did not include a rating or outlook change, follows new legislation that Illinois Governor JB Pritzker signed last week.
Bloomberg Markets
By Shruti Singh
August 5, 2025