Posted on 03/07/2015 5:45:37 AM PST by george76
Moody’s Investors Service on Friday announced it had reduced its rating on Chicago Board of Education debt to one level above junk bond status.
Moody’s downgraded the rating to Baa3 from Baa1 on the board’s general obligation debt. That rating applies to a total of $6.3 billion in outstanding debt held by Chicago Public Schools.
That lowered rating, according to Moody’s, “reflects CPS’s continued reliance” on its reserves to cover ongoing operating expenditures, “particularly pension contributions, which will steadily increase in the coming years.”
...
the lowered CPS rating also takes into account the city’s own credit rating, which also was reduced by Moody’s this week.
In a statement issued Friday, CPS said the downgrade “should come as a shock to no one” considering the ongoing pension crisis.
“CPS is facing downgrades because of broken politics that force Chicago taxpayers to pay twice for teacher pensions
(Excerpt) Read more at chicago.suntimes.com ...
Looks like the implosion is beginning.
The Chicago Public Schools should have a junk bond rating.
Once again, if these folks had been at Jonestown, they would have mixed their own Kool-Aid...
Irony can be sweet!
Chicago=Detroit
Chicago=Detroit=USA at the rate and direction we are moving.
Good.
The financially illiterate Chicago Sun Times writer Maudlyne Ihejirika says "That rating applies to a total of $6.3 billion in outstanding debt held by Chicago Public Schools."
Well, actually, no, Maudlyne. What you presumably meant to say, assuming that you have any idea whatsoever of what you are talking about (doubtful) was "That rating applies to a total of $6.3 billion in outstanding City of Chicago debt held by and owed to existing bondholders to pay for (stupid costs incurred by) CPS."
CPS doesn't now and never has "held" (as in owned) a dime of that debt.
It's also pretty clear that any Sun Times on-line editors are either equally financially illiterate or nonexistent.
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