Chicago’s Downgrade to Junk Makes Timing for Bond Deal Uncertain
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Less than a week after Chicago’s credit rating was cut to junk by Moody’s Investors Service, the timing on the biggest piece of a $383 million bond deal has been cast into doubt.
A $201 million offering managed by Ramirez & Co. and initially planned for Tuesday has been shifted to day-to-day status, according to data compiled by Bloomberg. The sale is part of an effort to refinance floating-rate debt that exposed the city to penalties after Moody’s cut Chicago to junk on May 12. Standard & Poor’s and Fitch Ratings also lowered the city last week, while giving it an investment grade.