KBRA assigns an A+ long-term rating to the City of Chicago, Chicago O’Hare International Airport General Airport Senior Lien Revenue Bonds Series 2026A Non-AMT. Simultaneously, KBRA affirms the A+ rating on approximately $10.8 billion of outstanding Chicago O’Hare International Airport General Airport Senior Lien Revenue Bonds. The Outlook on the rating remains Stable.
Security and Operational Framework
The City secures the O’Hare GARBs with a first lien pledge of Net Revenues from airport operations. The pledge also includes certain funds and accounts maintained under the Senior Lien Indenture. The City owns O’Hare and operates the airport through the Chicago Department of Aviation. The City accounts for O’Hare as a separate enterprise fund distinct from Chicago Midway International Airport.
Capital Improvement Program Progress
The CDA implements a $13.4 billion capital improvement program through project completion. The program includes the $11.9 billion ORDNext terminal area program and $1.5 billion additional projects. ORDNext features two satellite concourses and the replacement of Terminal 2 with the O’Hare Global Terminal. Construction of Concourse D began in July 2025 and will conclude in 2028.
Key Credit Considerations
Credit positives include a strong air trade area and the nation’s largest dual-hub. Debt service coverage and liquidity are important for financial stability. ORDNext completion should improve efficiency, capacity, and competitiveness. However, only 27% of ORDNext financing is secured currently. Leverage could reach $19.8 billion by 2031, thereby increasing airline costs.
Rating Sensitivities and Methodologies
Upgrades may follow passenger growth and reduced airline costs. Downgrades could occur if additional GARBs reduce financial flexibility. “Public Finance: U.S. General Airport Revenue Bond Rating Methodology”. “ESG Global Rating Methodology”
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News Source: Businesswire.com
