KBRA assigns an A+ long-term rating to the City of Chicago (the City) Chicago O'Hare International Airport (O'Hare) General Airport Senior Lien Revenue Bonds (O'Hare GARBs), Series 2026A (Non-AMT). Concurrently, KBRA affirms the A+ rating on the City's approximately $10.8 billion of Chicago O'Hare International Airport General Airport Senior Lien Revenue Bonds. The Outlook is Stable.

The City's O'Hare GARBs are secured by a first lien pledge of Net Revenues derived from the operations of O’Hare and certain funds and accounts maintained under the Senior Lien Indenture. O’Hare is owned by the City and operated by the Chicago Department of Aviation (CDA). The City accounts for O’Hare as an enterprise fund separate and distinct from Chicago Midway International Airport (Midway), which the City also owns and operates through the CDA.

The CDA is implementing a $13.4 billion (escalated dollars through completion) CIP at O’Hare comprised of the $11.9 billion (escalated dollars) ORDNext terminal area program (TAP), and $1.5 billion (escalated dollars) of additional CIP projects. ORDNext includes the construction of two satellite concourses west of the Airport’s existing Concourse C and the replacement of existing Terminal 2 with the new O’Hare Global Terminal (OGT). Construction of the first satellite concourse, now referred to as Concourse D, began in July 2025 and is scheduled for completion in 2028.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

• Strong, diverse, expansive air trade area supporting origination and destination activity and the nation’s largest dual-hub.
• Adequate debt service coverage and sound liquidity, underpinned by a residually based airline use and lease agreement.
• The expected efficiency, capacity and competitive benefits of successfully completing ORDNext.

Credit Challenges

• Relatively low (27%) level of ORDNext program financing currently secured, exposing the City to various financing and execution risks.
• Exceptionally high ($19.8 billion, CY 2031) pro-forma leverage, largely driven by ORDNext, and projected, very high airline costs.

Rating Sensitivities

For Upgrade:

• Sustained growth in passenger activity and related revenues leading to materially lower airline costs.
• Moderating leverage metrics through amortization of existing debt load and/or limited future issuance.

For Downgrade:

• Issuance of GARBs beyond what is currently contemplated leading to diminished financial flexibility.
• While unlikely, a sustained loss in passenger volume and revenues due to an airline de-hubbing.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. General Airport Revenue Bond Rating Methodology
• ESG Global Rating Methodology

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013508

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