Moody’s Investors Service downgraded Chicago’s credit rating one notch to Baa1 with a negative outlook, putting it only three notches above junk-bond status.
The city’s rating had been A3 after Moody’s lowered it three notches in July due to the city’s huge unfunded pension liabilities.
New York-based Moody’s downgrade today said those pension debts “threaten the city’s fiscal solvency absent major revenue and other budgetary adjustments adopted in the near term and sustained for years to come.”
Except for Detroit, which is in bankruptcy, Chicago is now the lowest-rated major city in the nation
Read more in Crain’s Chicago Business.