Moody's drops Chicago Public Schools' credit rating again

The Chicago Sun-Times reports:

The same agency that gave a “junk” status credit rating to Chicago Public Schools in May has dropped the cash-strapped school system’s rating lower still.

Citing “the precarious liquidity position of the district” and a 2016 budget that assumes $480 million in state funding not yet appropriated, Moody’s Investors Service dropped CPS’ rating from Ba3 to B1 on Monday.

The rating also reflects “the district’s steadily escalating pension contributions and recent use of reserves to fund recurring contributions,” according to a Moody’s statement. “The rating further reflects the district’s elevated debt levels.

The struggles of government schooling.