Posted on 11/13/2013 9:24:13 AM PST by SeekAndFind
SPRINGFIELD, Ill. (AP) -- Fitch Ratings has downgraded the credit worthiness of Chicago's bond debt because of its public pension problems.
Fitch dropped the rating from AA- to A- on $8 billion in general obligation bonds, backed by property taxes.
It also dropped the rating on $497 million in sales tax bonds — paid for by both the city's local sales tax and its share of the state sales tax.
(Excerpt) Read more at finance.yahoo.com ...
I’m thinking their ‘bonds’ are about neck and neck with a case of Charmin Easy Wipes....
One day you’ll be better off with your retirement money to be in bonds from the PIIGS nations rather than the likes of Chicago or Detroit.
I sure do miss the United States of America.
Just keep handing out fat pensions to the hacks, and leave the next guy to pay for it.
these ratings are a joke, they shoudn’t be in any A rating anymore. like there’s any evidence they’re turning it around.
Chickens coming home to roost... couldn’t happen to a more deserving and corrupt city...
Those bonds illustrate an increasing trend in certain sectors in the economy including the financial markets: pricing of risk based upon perceived likelihood of future rule changes in their favor. What matters is not whether Chicago will ever have money to pay off its bonds--what matters is how much bail-out cash it will be able to extract from elsewhere to reimburse its creditors. If I know that someone's never going to pay me back for a loan, but I know that I'll be able to convince some other entity to repay me 90 cents on the dollar when the borrower defaults, and expect to have gotten more than 25 cents on the dollar in interest from the borrower before that, how "foolish" is the loan, really?
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