Moody's piles on, downgrades Chicago schools and parks to Junk Bond Status

Crain's Chicago Business reports:

Moody's Investors Service dropped two other hammers on Chicago taxpayers today, downgrading debt on both Chicago Public Schools and the Chicago Park District to junk levels.

Moody's said the new Ba3 rating for CPS reflects "increased strain on the district's precarious financial position" in view of last week's Illinois Supreme Court decision overturning state pension reform.

It tied the reduced park district's Ba1 rating to the district's "governance ties to the city of Chicago," which yesterday was similarly downgraded to "speculative" level.

Both downgrades are three-level drops. And Moody's left both on negative watch, meaning that further downgrades in the coming months are likely.

Chicago fails basic math.