Another Rating Agency Passes Judgment on Chicago’s Finances

CHICAGO (AP) — Fitch Ratings is the latest agency to weigh in on Chicago’s credit worthiness, setting the city’s debt rating above the junk status given it by Moody’s Investors Service.

Moody’s downgraded the city’s rating to junk status Tuesday. Standard & Poor’s on Thursday downgraded the city to four notches above junk status.

By lowering the city’s rating to BBB+ from A-, Fitch Ratings indicated it believes the risk is low Chicago will default on its more than $8 billion worth of taxpayer-backed debt.

In a statement, Fitch said it didn’t believe the Illinois Supreme Court’s decision that pension reform passed by the Legislature was unconstitutional would directly affect the prospects for the city’s enacted pension reform.

Fitch noted Moody’s downgrade gives banks the option to demand repayment by Chicago of debt and other outstanding obligations.

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