From CBS Chicago:
A third financial ratings agency lowered the credit rating for the Chicago Public Schools to "junk" status on Friday, dealing another blow to the cash-strapped city school system.BBB? BB? Why not just rate all CPS bonds with an "F" for failure.
The move by Standard & Poor's Ratings Services followed similarly grim statements issued recently by the other two major agencies, Fitch Ratings and Moody's Investors Services, the Chicago Sun-Times is reporting.
After observing "the board's decisions in constructing" a new budget for the coming fiscal year, Standard & Poor’s downgraded CPS' long-term rating from "BBB" to "BB" with a negative outlook.
In a statement, Standard & Poor's made references to the Chicago Board of Education's perennial deficits, dwindling cash reserves and the vote last month to borrow as much $1.16 billion by selling bonds.
And while there are other financial rating services, Fitch, Moody's, and S&P are the big ones.
The center of the CPS rot is unfunded pension obligations.
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