Moody's downgrades CPS credit rating : Chicago Board of Education debt to one level above junk bond status.

The Chicago Sun-Times reports:

Moody’s Investors Service on Friday announced it had reduced its rating on Chicago Board of Education debt to one level above junk bond status.

Moody’s downgraded the rating to Baa3 from Baa1 on the board’s general obligation debt. That rating applies to a total of $6.3 billion in outstanding debt held by Chicago Public Schools.

That lowered rating, according to Moody’s, “reflects CPS’s continued reliance” on its reserves to cover ongoing operating expenditures, “particularly pension contributions, which will steadily increase in the coming years.”

Another problem, according to Moody’s, is “the district’s limited ability to raise operating revenue.” And, the ratings agency notes, the lowered CPS rating also takes into account the city’s own credit rating, which also was reduced by Moody’s this week.

The great moments of public education. Government schools sure are expensive. What kind of "math role model" are Chicago's government schools providing for our youth?