Posted on 05/13/2015 9:43:58 PM PDT by Olog-hai
Moody’s Investors Service downgraded the debt of both the Chicago Public Schools and the Chicago Park District on Wednesday, a day after it downgraded the city’s bond rating to junk status.
Moody’s has given a Ba3 rating to the school district’s debt, down from a Baa3 rating, saying the district faces “increased strain on its precarious financial position” due to last week’s Illinois Supreme Court decision overturning state pension reform. It reduced the Chicago Park District’s rating to from Baa1 to Ba1, one notch below investment grade.
The rating service’s moves affect the school district’s $6.2 billion in general obligation debt and the park district’s $616 million in general obligation debt. […]
When Moody’s lowered the city’s bond rating on Tuesday, it noted Chicago’s tax base is “highly leveraged by the debt and unfunded pension obligations” of the city and overlapping governments. …
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Those cans that they were kicking down the road in Chicago are finally too dented up to continue their journey. It would be instructive for the rest of the country of Chicago were to go bust, but even the judges there are crooked, so it may not yet be time.
nothing will happen....just like Detroit, those who bought bonds and invested in the city will just be flushed...the govt workers will not suffer one bit...
What took this long?
Over time, big city Democrats succeed in cornering taxpayers in their filthy, dank alleys and let the union enforcers step up to administer the coup de gras!
Au contraire. Detwaa was not unscathed, Jobs were lost and the Pensions got reduced, not as bad as people thought, but their was a haircut.
IIRC, the numbers for Chicago are staggering. 100 Billion vs Detwaa's 18 to 20 Billion, 5 times the size of Detroit's wows.
It is the revenge of Meredith Whitney IMHO. Remember her?
The Investment Wonkette that warned of Muni Bond Collapses by less than healthy municipalities?
If it wasn't for the ZIRP Bernake-Yellen funny money policy and even Muni's had to raise their rates, how long would it be before they be able to service the coupon payments? Not long IMHO and many more would follow.....
What a co-wink-a-dink, these two cities were run by does Waskaly Wepublicans, tongue in cheek their...
I think the question begs, if and when this Chicago house of cards collapses, will it do so with a shrug, or is it Sept of 08’ all over again....
“nothing will happen....just like Detroit, those who bought bonds and invested in the city will just be flushed...the govt workers will not suffer one bit...”
Just like GM and Chrysler, where Obola “gave” these companies to their unions, the very folks who were responsible (along with a gut less management) for their financial failure.
Moodys got hammered for not being ahead of the curb on the housing bust. Looks like they’ve learned their lesson.
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