Fitch Downgrades Chicago Board of Education Rating

Fitch Ratings changed the rating from A+ to A

View Comments (
)
|
Email
|
Print

    NEWSLETTERS

    West Rock

    A second major bond-rating agency has downgraded Chicago Board of Education debt following last month's Chicago Teachers' Union strike.

    Fitch Ratings changed the rating from A+ to A, and said the outlook remains negative. In a statement Tuesday, the agency said the labor agreement negotiated to end the strike calls for increased costs to Chicago Public Schools at a time of "highly stressed operations.''

    Fitch said dramatic changes are needed to close next year's budget gap. The rating applies to approximately $6.1 billion in debt.

    Moody's Investor Service downgraded the board's debt last week, citing similar concerns. It was a move with which Mayor Rahm Emanuel said he was "not pleased."

    Chicago Public Schools says in a statement that years of revenue losses and "misplaced priorities" have led to educational and financial crisis and tough choices must be made over the next three years.
     

     Don't Run! Watch ... The 2012 Bank of America Chicago  Marathon kicks off at 7 a.m. on Oct. 7. NBCChicago.com   will bring you live streaming coverage of the entire  event. Watch on your computer, watch on your smart phone or watch on your TV. This is going to be big.