Chicago's credit outlook downgraded to negative by S&P Global Ratings.

S&P Global Ratings lowered Chicago's credit outlook to negative due to its reliance on one-time measures, consecutive budget deficits, and reduced pension contributions. The city's rating was previously lowered to BBB in January, citing budget challenges. Mayor Brandon Johnson proposed a partial supplemental pension contribution for 2026, but S&P warns that the probability of a downgrade could remain elevated into the 2027 budget cycle.