CHICAGO (CBS)<</strong< — Chicago Treasurer Stephanie Neely is trying to reassure residents that the nation's downgraded credit will not harm city finances.

“We’re going to be fine,” she said.

LISTEN: WBBM Newsradio’s Nancy Harty reports

As WBBM Newsradio’s Nancy Harty reports, Neely says Chicago’s nearly $700 billion portfolio is safe.

“The portfolio that I manage is invested in fixed-income securities, and the volatility that everyone’s expecting in the stock market won’t affect us,” she said.

Neely agrees interest rates are likely to go up, but mainly because they’re currently so low. That means future city borrowing could be more expensive.

Neely says she has expected a downgrade in the U.S. credit rating for about a year, and over the last nine months, she has changed the city’s portfolio so the city isn’t locked in at low interest rates.

Standard & Poor lowered the U.S. credit rating from AAA to AA+ on Friday evening