Fitch joins Moody's in downgrading Chicago Public Schools debt to junk

Chicago Sun-Times building

Chicago--the Junk City--is getting junkier.

From the Chicago Sun-Times:

Less than a week after the Chicago Board of Education voted to borrow as much as $1.16 billion by selling bonds, another financial ratings agency has lowered its credit rating for the nation’s third-largest school system to "junk" status.

The move is another indicator the Chicago Public Schools will pay higher interest rates when planned bond sales occur in the coming months.

Fitch Ratings announced Monday it lowered its rating on CPS' general obligation bond debt one notch, from 'BBB-' to 'BB+' with a negative watch. The move follows Moody's Investors Service rating CPS' debt at junk status in May.

Related post:

Chicago: Junk City