According to an article in Crain’s Chicago Business, S&P has downgraded Chicago two notches to A- from A+. This avoids the double junk status so far. S&P also listed Chicago as “credit watch with negative implications.”
S&P cited Chicago’s diverse tax base and “management team that has good policies in place.” Which seems at odds with a city that has reported ten straight years of decreases in net position and its current liquidity crisis.
S&P indicated it would be watching closely the negotiations surrounding more than $1 billion variable-rate debt.
