Chicago Cut to 3 Levels Above Junk by Moody’s on Pensions
This article is for subscribers only.
Chicago’s credit rating on $7.8 billion of general-obligation debt was cut one level to Baa1 by Moody’s Investors Service, which cited “massive” pension liabilities for the third-most populous U.S. city.
The reduction, on the 177th anniversary of Chicago’s incorporation, follows a three-step downgrade in July for the city of 2.7 million. The outlook remains negative, meaning the rating may be lowered further.