S&P Warns Chicago That Pension Cost-Hike to Pressure Budget

A new law aimed at raising pension benefits for some Chicago police and firefighters risks further straining the city’s finances, according to S&P Global Ratings.

S&P’s warning, issued on Monday, comes nearly seven months after the firm cut the city’s credit rating by one notch to BBB with a stable outlook. The latest report, which did not include a rating or outlook change, follows new legislation that Illinois Governor JB Pritzker signed last week.