Moody's Investors Service downgraded Chicago's credit rating one notch to Baa1 with a negative outlook, putting it only three notches above junk-bond status.No direct comment yet from Strongman Rahm Emanuel on this story. #Chicagofail.
The city's rating had been A3 after Moody's lowered it three notches last July due to the city's huge unfunded pension liabilities.
Except for Detroit, which is in bankruptcy, Chicago is now the lowest-rated major city in the nation as it prepares to sell $388 million in new bonds next week.
The lower rating means the city will have to pay a somewhat higher interest rate to attract investors.
Tuesday, March 04, 2014
Crain's Chicago Business reports:
Posted by Steve Bartin at 5:56 PM