Statement on Chicago, Illinois

August 2, 2017

Assured Guaranty insurance and reinsurance is in force with respect to various bonds, supported by a number of distinct revenue streams, related to the City of Chicago. These bonds include general obligation and tax-backed bonds, water and wastewater revenue bonds, and airport and airport facility charge bonds. In a number of cases, Assured Guaranty would have to make a claim payment only if the obligor failed to pay on its obligation and another bond insurer failed to pay on its guaranty, as Assured Guaranty insured bonds that were already guaranteed by another bond insurer.

The tables below detail our exposure to the City of Chicago. All of the bonds listed are presently current on their debt service payments. Additionally, holders of Chicago-related bonds insured by Assured Guaranty are currently benefiting from their bonds’ relative price stability compared with similar uninsured Chicago-related obligations.

Chicago Public Schools

Assured Guaranty also has exposure to Chicago’s public school district.  The City of Chicago is not financially responsible for these school district obligations.  In a number of cases, Assured Guaranty would have to make a claim payment only if the obligor failed to pay on its obligation and another bond insurer failed to pay on its guaranty, as Assured Guaranty insured bonds that were already guaranteed by another bond insurer. The table below details our exposure to Chicago’s public school district. All of the bonds listed are presently current on their debt service payments.