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Moody's Downgrades Chicago's Rating Over Pensions

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    NEWSLETTERS

    Northeastern University employees hope a court challenge will protect their pension funds. MaryAnn Ahern reports. (Published Wednesday, Dec 4, 2013)

    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.

    University Workers Speak Out Against Pension Deal

    [CHI] University Workers Speak Out Against Pension Deal
    Northeastern University employees hope a court challenge will protect their pension funds. MaryAnn Ahern reports. (Published Wednesday, Dec 4, 2013)

    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.

    Chicago Coalition Forms to Fight Pension Cuts

    [CHI] Chicago Coalition Forms to Fight Pension Cuts
    City Workers call on Mayor Emanuel to raise taxes, not cut pension benefits (Published Monday, Feb 17, 2014)

    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.

    Rutherford No Fan of Pension Deal

    [CHI] Rutherford No Fan of Pension Deal
    The Illinois Treasurer and candidate for governor said Thursday that he doesn't think the deal brokered by legislators to fix Illinois' pension mess would cut constitutional muster. He said he'd do things differently, but was light on specifics. (Published Wednesday, Feb 19, 2014)