Cook County Community College District No. 508 (City College Of Chicago); General Obligation

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'BBB' rating on Cook County Community College District (CCD) No. 508 (City Colleges of Chicago, City Colleges, or the district), Ill.'s outstanding general obligation (GO) bonds. Our outlook revision on City Colleges is based on its relatively high (versus Illinois community college peers) dependence on what we consider unreliable state support for operations and benefits (in fiscal 2019, state appropriations, including other state grants and contracts, constituted 42% of total operating and non-operating revenues), and general enrollment uncertainty stemming from COVID-19. In our view, the district's fairly thin unrestricted reserves provides limited cushion against potential operating and state appropriation variability. Our negative outlook encompasses our view that

...its state community college peers. This pressure would be in addition to the stress most higher education institutions are facing during the current environment and the COVID-19 pandemic, including, weakened operating results, the scope of which will be determined by the duration of COVID-19, potential declines in fall 2020 enrollments, and retention challenges. City Colleges has already experienced several years of persistent large enrollment declines due to a weakening demographic profile with a declining population of potential college applicants, and significant outmigration of students to out-of-state institutions....

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