KBRA Assigns AAA Rating to The County of Cook, Illinois Sales Tax Revenue Bonds, Series 2024; Affirms Rating for Parity Bonds

BY dprimeramano
July 26, 2024
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NEW YORK-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

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.

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