Junk City.
CHICAGO (AP) — Moody’s Investors Service announced Tuesday it has lowered Chicago credit rating to junk bond status, citing unfunded pension obligations and lagging tax revenue, in a move Mayor Rahm Emanuel called irresponsible.
Moody’s downgraded the city’s debt rating on bond issues backed by property, sales and fuel tax revenue to Ba1, one notch below investment grade, from Baa2. As a result, the city’s borrowing costs will increase as it pays more interests to make its bonds attractive to buyers.