In a highly unusual public feud, Fitch and Moody’s are disagreeing about the credit structure of new Chicago School bonds. In echos of 2007 and 2008, Chicago Public Schools appears to be rating shopping by not inviting Moody’s to rate its new issue and inviting Fitch and Kroll to rate the issue.
Fitch ended up rating the issue B+ and Kroll BBB. Both Moody’s and Standard and Poor’s have Chicago Public Schools rated as junk, inline with Fitch. There appears to be this public feud between Fitch and Moody’s over the structure of junk rated municipal bonds.
