Chicago Has Credit Rating Cut 3 Steps by Fitch on Pension

Chicago, the third-most-populous U.S. city, had its credit rating lowered three steps on more than $8 billion of debt by Fitch Ratings, which cited the city’s growing unfunded pension liability.

Fitch cut the rating on $8 billion of Chicago’s general-obligation bonds to A- from AA-, the New York-based company said today in a statement. It also took the same action on $500 million of debt backed by the Windy City’s sales taxes.