Chicago Downgraded Again

Ho-hum, another rating service downgrades Chicago.

    Citing the lack of a long-term plan to fund pensions for city police and fire personnel, another financial ratings agency has lowered its credit rating for Chicago city government.

    Standard & Poor’s Ratings Services announced Wednesday it lowered its rating on City Hall’s general obligation bond debt one notch, from ‘A-’ to ‘BBB+’ with a negative outlook. That’s still above its “junk” rating.

    The move follows Moody’s Investors Service rating the city’s debt at junk status in May. The Moody’s downgrade contributed to city taxpayers being forced to accept higher interest rates on a $674 million borrowing deal that occurred shortly after the rating was issued.

Hey, Detroit, make a bit of room there in the Bankruptcy Bin.