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.
Coincidence? Obama chooses Chicago for his library same day city downgraded to junk bond rating
Chicago Junk City update: Public schools, park district downgraded to junk