Friday, July 26, 2013

Chicago bond ratings slashed

Chicago bond ratings slashed - ""The current administration has made efforts to reduce costs and achieve operational efficiencies, but the magnitude of the city's pension obligations has precluded any meaningful financial improvements," Moody's said. The credit rating agency added that its negative outlook is based on the "dramatic spike in annual pension payments scheduled to take effect in the 2015 budget year." Moody's said it expects the payments "will place material strain on the city's operating budget." "The outlook incorporates the likelihood of continued growth in unfunded liabilities in the city's four pension plans given currently suppressed contributions from the city," Moody's added, noting its outlook also takes into account Illinois' constitutional protection of pension benefits."


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