Friday, March 7, 2014

Chicago's Best to You

lovingly lifted from Frontpage Mag:

Moody’s Investors Service has downgraded Chicago’s credit rating, 
citing the city’s unfunded pension liabilities.

The agency announced Tuesday it’s lowering the rating on $8.3 billion debt 
from A3 to Baa1, putting it only three notches above junk-bond status.

Moody’s Investor Service rated the city’s upcoming $388 million bond issuance at Baa1, down from A3, a level set last year after an unusual triple downgrade.

Chicago will test the bond market for the first time since its bond rating dropped three notches, thanks to $1.9 billion in borrowings added Monday to the mountain of debt piled on Chicago taxpayers.

The lower rating means the city will have to pay high interest rates.

Moody’s concluded Chicago has the highest level of unfunded pension debt 
“of any rated U.S. local government.”

Not for long...

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