Illinois broke a 23-year streak on Tuesday, when credit ratings agency Moody’s upgraded the state’s bond rating for the first time since 1998 – the same year the Chicago Bulls won their last championship.
Moody's Investors Service
Reports from credit ratings agencies aren’t typically considered thrilling reads. But the latest one from Moody’s is so ominous, it ought to give taxpayers, or at least state lawmakers elected to represent them, the shivers.
The city plans to go to the debt markets for almost $1.2 billion, including more so-called “scoop and toss” borrowing.
Moody’s Investors Service has issued a “credit negative” warning against the state in light of last Friday’s State Supreme Court ruling rejecting changes to public pensions. It’s a somewhat tepid response to the ruling, relative to the double ratings drop Moody’s applied to city of Chicago’s credit, resulting in junk bond status. In today’s report, Moody’s says the reforms could have reduced the unfunded pension liability by about $21 billion.
Moody’s Investors Service has downgraded the credit ratings of both Chicago’s schools and parks, one day after its downgrade of the city’s debt to junk status.
The latest casualty in the state’s battle for pension reform is Chicago’s credit ratings. Moody’s Investors Service has bumped the city’s general obligation and sales tax ratings down three notches. We discuss what this triple downgrade means.