Part 2/11:
The recent credit assessment reflects concerns over the city’s financial management and political dysfunction. Agencies have cited ongoing friction within Chicago's government, including disagreements between the mayor and city council, as factors contributing to diminished investor confidence. The downgrade, occurring during the contentious 2026 budget cycle, was especially significant because it coincided with the city borrowing money to cover back pay for firefighters and settle longstanding judgments and legal settlements. These actions, while necessary, have further strained the city's already fragile fiscal health.