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Posted on 03/05/2014 9:10:37 AM PST by SeekAndFind
America is now run by the best and brightest of Chicago. What they did to Chicago, they’re doing to America.
Moody’s Investors Service has downgraded Chicago’s credit rating, citing the city’s unfunded pension liabilities.
The agency announced Tuesday it’s lowering the rating on $8.3 billion in debt from A3 to Baa1, putting it only three notches above junk-bond status.
Moody’s Investor Service rated the city’s upcoming $388 million bond issuance at Baa1, down from A3, a level set last year after an unusual triple downgrade.
Chicago will test the bond market for the first time since its bond rating dropped three notches, thanks to $1.9 billion in borrowings added Monday to the mountain of debt piled on Chicago taxpayers.
The lower rating means the city will have to pay high interest rates.
Moody’s concluded Chicago has the highest level of unfunded pension debt “of any rated U.S. local government.”
Chicago is home to one of the most troubled pension systems in the country. In total, the city’s four pension funds — for firefighters, police officers, and two for other city workers — face funding holes of nearly $20 billion.
uesday’s downgrades affect $8.3 billion in city debt, including $7.8 billion in general obligation bonds and $556 million in sales tax bonds. It follows previous downgrades by Moody’s and other ratings agencies.
It also comes as the city prepares to issue hundreds of millions in new bonds, according to Moody’s.The latest hit to the city’s general obligation and sales tax ratings puts that debt only a few notches away from junk status. Moody’s said its outlook remains negative, which means additional downgrades could come.
Chief Financial Officer Lois Scott was asked Monday how much the downgrade would add to the city’s borrowing costs.
“We haven’t issued debt since then. So, we have no way of knowing,” Scott said before hustling out of the City Council chambers.
Chicago now has the worst credit rating of any major city except Detroit.
Don’t worry, Detroit, Chicago will get there soon. So will large chunks of California and New York City. And then they’ll have to annex the suburbs, seize 401Ks and start selling office furniture on eBay.
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Way to go, Rahm. Guess your boy in the White House will have to funnel more taxpayer cash into your corrupt city under the guise of “rebuilding infrastructure.” To the rest of us, it looks like money laundering.
Cities promised exorbitant pensions and never funded them, relying instead on income from future tax revenues, never once thinking about the taxpayers who are paying the bill.
I think a lot of taxpayer money has been quietly pumped into Chicago by Obama.
Just recently a boatload of money went to solving the asian carp problem but it turned out that they never even looked at the shipping canal and the money went into the Chicago Sewers. The Army Corps of Engineers now wants $8 billion for the same thing again and their plans are for Chicago sewers again.
In 2009 Obama appointed Chicago crony Cameron Davis as Great Lakes Czar and give him a $20 billion budget. Since then, Davis has disappeared from the face of the earth wit the money.
Ah, libs.
They understand nothing.
They cannot create.
They cannot analyze.
They have an unbroken record of failure.
And yet we let them run things.
CW-II...it’s closer in the mirror than it appears.
Why do you say the commies are failing? Appears to me that they are doing just what they have longed for, turning the US into a third world country with themselves as the elite and the rest of us as peons. Going precisely as planned by the elites.
Yea! Detroit is still #1 !
Not for long. With the new Chief of police’s endorsement the residents are now shooting back and eliminating the criminal element one thug at a time.
Many stories in the press lately about an inspiring rapper, who was in the midst of turning their life around stepping in front of a speeding bullet, while there happened to be a home invasion/robbery taking place at that very spot. Almost brings tears to your eyes...
“Many stories in the press lately about an inspiring rapper, who was in the midst of turning their life around stepping in front of a speeding bullet, while there happened to be a home invasion/robbery taking place at that very spot. Almost brings tears to your eyes...”
That’s a story that will ruin my day. So terribly sad./s
.
(gotta get there first to ensure pensions are bailed out) /s
Madigan wants state to spend $100 million on Obama library http://www.chicagotribune.com/news/local/breaking/chi-madigan-wants-state-to-spend-100-million-on-obama-library-20140304,0,1734632.story
print more money!
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