Oak Lawn's Credit Rating Gets Another Upgrade For 2nd Consecutive Year

OAK LAWN, IL — The credit rating agency Moody’s announced Thursday that it was upgrading the Village of Oak Lawn’s credit rating, making it the second boost in as many years.

Moody’s Ratings upgraded the village’s credit rating from a Ba2 to a Ba1, and listed as their rationale better governance, improvements in financial position, and increases in pension contributions and fund balances.

This boost followed an upgrade in 2023 by the other major ratings agency, Standard & Poors, who upgraded the Village from a “BBB-Negative with Stable Outlook” to a “BBB with a Positive Outlook.” The two upgrades reverse a 10+ year consecutive slide of ratings downgrades from the rating agencies, including a downgrade to “junk” status by Moody’s in December of 2020 .

Moody's, along with Standard & Poors and Fitch, are considered the "big three" of credit rating agencies. The three provide international financial research on bonds issued by commercial and government entities.

"Our village board has diverse viewpoints on a variety of matters, but when it comes to our taxpayer’s money, we are 100 percent aligned," said Mayor Terry Vorderer in a news release. "We told Tom Phelan when we appointed him village manager in 2021 that he was free to make any changes he felt were necessary to strengthen our village finances.”

A credit upgrade makes the bonds the village issues more attractive to investors, usually resulting in lower borrowing costs for the village.

When asked what he thought were the primary reasons for the village’s improved financial position, Oak Lawn Village Manager Tom Phelan cited the change in culture at the village.

“Change is never easy, and for some people it becomes impossible,” Phelan said in reference to parting ways with several long-time village employees, some of whom were close friends. “But there is a new culture at the Village, and a management team in place who I’m more than confident will continue to deliver positive results for the people of Oak Lawn.”