No matter how or when Chicago’s second straight budget stalemate ends, one thing is certain: the bond rating that determines city borrowing costs is in real danger of dropping just one notch above junk status.

The political standoff that threatens to bring about a first-ever shutdown of city government is enough to trigger a drop from Wall Street rating agencies, whose grades are watched by investors craving certainty.

Also factoring into a potential bond rating downgrade is the City Council’s reluctance to raise property taxes, and Mayor Brandon Johnson’s continued reliance on one-time revenues — including a record $1 billion tax increment financing surplus, scaled-back advance pension payments, and a push to borrow $449 million for firefighter back pay and police settlements.

Another

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