Moody’s Investors Services has downgrade the Chicago Park District to Baa1 from A3. Moody’s cites the District’s highly leveraged tax base (debt plus pension liabilities to market value and to assessed value) and the indirect impact of the City of Chicago’s deteriorating financial position and unfunded pension position.
The District has historically been prudently managed and has maintain solid reserves. Yet Moody’s is rightfully concerned about the impact of the large unfunded pension liabilities of the City of Chicago and the State of Illinois.
