Moody’s rates Chicago Parking notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Chicago Parking Meter's $200 million 4.52% senior secured notes due 2024.

The Baa3 rating on the existing $600 million of 5.489% senior secured notes due December 2020 was affirmed.

The outlook is stable.

Proceeds will be used to fund a cash distribution to the Sponsors and to pay transaction fees.

Moody’s said Chicago Parking’s Baa3 rating is ultimately underpinned by the sanctity of the 75-year Concession Agreement (about 70 years remaining), which was tested for several years now under a highly political environment following a severe recession in 2008 and 2009.

The agency further recognizes that the Concession Agreement also provides for a clear, formulaic compensation process under a number of different events, thus protecting Chicago Parking, notwithstanding the high level of flexibility the City of Chicago has under the terms of the concession.

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