Goes to show what 50+ years of democratic rule will do - from Chicago's CBS affiliate:
Moody’s Downgrades Chicago Credit Rating To ‘Junk’ Bond Status
Citing the city’s underfunded pension crisis, Moody’s Investors Service downgraded Chicago’s debt to junk bond status on Tuesday.
The Ba1 rating means that Chicago’s $8.1 billion in debt carries a substantial credit risk. That credit rating is also just a few levels above bonds that are in default.
“The Ba1 rating on Chicago’s debt incorporates expected growth in the city’s highly elevated unfunded pension liabilities,” Moody’s said.
The service cited the state Supreme Court’s recent decision to toss out the state’s pension reform bill as unconstitutional, along with concerns that the city will be able to meet its pension obligations in the future.
And a bit more:
The move is not only financially embarrassing for the city, it will also increase the costs for future borrowing.
Moody’s believes Chicago’s credit challenges will continue, both in the near term and in the long term.
That's going to be expensive - wonder when they will declare bankruptcy. Five years?
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