Ward Room
Covering Chicago's nine political influencers

Moody's Downgrades Chicago's Rating Over Pensions

View Comments (
Moody's Downgrades Chicago's Rating Over Pensions

Illinois lawmakers argue over a solution to the state's pension crisis, which has led Moody's downgrading Chicago's credit rating.

Photos and Videos

University Workers Speak Out Against Pension Deal

Northeastern University employees hope a court challenge will protect their pension funds. MaryAnn Ahern reports.

Chicago Coalition Forms to Fight Pension Cuts

City Workers call on Mayor Emanuel to raise taxes, not cut pension benefits
More Photos and Videos

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 in debt from A3 to Baa1, putting it only three notches above junk-bond status.

Moody's gave Chicago a negative outlook indicating another downgrade could occur if there's no pension fix. Moody's says the rating "reflects the city's massive and growing unfunded pension liabilities."

Moody's says those liabilities "threaten the city's fiscal solvency" unless major revenue and other budgetary adjustments are adopted soon and are sustained for years to come.

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

Moody's says a commitment to increasing tax revenue is one thing that could raise the rating.

Leave Comments