Two More Steps to "Junk" Status
- Chicago’s plummeting bond rating took center stage in the race for mayor Friday after a Wall Street rating agency dropped it another notch — to two levels above junk status — citing Chicago’s $20 billion pension crisis.
The decision by Moody’s Investors Service to drop Chicago’s rating for a fifth time under Mayor Rahm Emanuel — from Baa1 to Baa2 — may cost the City of Chicago tens of millions of dollars.
As a result of the downgrade, the city is on the hook to pony up $58 million under agreements covering existing debt, according to Laurence Msall, president of the Civic Federation. While city officials can try to renegotiate those agreements, a City Hall spokeswoman had no immediate comment on the matter Friday night.
But hey, $100 million for DePaul, $400 million for a fantasy train station, tens of millions for a park, and lord knows what else. All while a few billion sits in TIF funds, skimmed away from the general fund and $500 million in red light and speed fines get tossed around like so much confetti.
Labels: money questions