Chicago"s BBB+ credit rating has been placed on negative watch by S&P Global Ratings, indicating a potential downgrade in the next three months.
The city is currently facing a significant budget shortfall and is considering using temporary measures to balance its budget for 2025. Analysts stress that the city"s credit rating could be negatively impacted if it relies on short-term solutions instead of implementing long-term changes to address the financial gap.
The outcome will depend largely on the approval of the upcoming budget and the strategies employed to manage the deficit.