"The city has improved budgetary management through a willingness and ability to increase revenue that reduced a structural deficit and facilitated the elimination of debt-based budget maneuvers and pension cost deferrals," Moody's Levett wrote in the report. The city still has challenges, notably its leverage and high fixed costs, according to Moody's. The upgrade comes as the city prepares for a $757 million bond sale expected to price the week of Nov. 28. The money raised will help fund community development and infrastructure projects. The sale will also include Chicago's first ESG issuance.