Another rating agency passes judgment on Chicago's finances

AP News
Posted: May 15, 2015 9:14 PM

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 by Moody's Investors Service.

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

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.

In a statement, Fitch said it didn't believe the Illinois Supreme Court's decision that pension changes passed by the Legislature were unconstitutional would directly affect the prospects for Chicago's pension overhaul. But Fitch noted Moody's downgrade gives banks the option to demand repayment of debt.