Chicago Dug Itself Out of a Financial Hole. Now It's Sliding Back In.

Chicago has returned to financial pressure after losing ground on its credit profile. Three ratings firms downgraded the city’s credit since January 2025, according to the report. The city had reached a key milestone in 2022, when it lifted a major rating out of junk status—a goal pursued for seven years. That earlier upgrade was supported by pandemic-era stimulus funds, but the latest downgrades signal that the turnaround has not held. The city is now facing renewed strain as credit conditions tighten again, reversing part of the progress Chicago worked toward in the prior cycle.