Fitch Ratings downgraded Chicago's bond ratings because of its overwhelming pension debt, which now sits at about $19.5 billion, and its inability to come up with a solution to the problem.
Fitch dropped the city's rating from AA- to A- on $8 billion in general obligation bonds, which are backed by property taxes. It also dropped the rating on $497.3 million in sales tax bonds to A- from AA-, and to BBB+ from A+ on $200 million in commercial paper notes.
Fitch noted in its report that even though the city has made recent improvements in other aspects of its credit profile, the budget is still tight.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
