Low Rating Other Than Detroit ... Chicago, 'ILL'

The situation worsened materially last Friday when the Illinois Supreme Court struck down a pension reform law that aimed at closing the state’s $105 billion hole.

That ruling, it turns out, would be the death knell for Chicago’s credit rating, at least as far as Moody’s is concerned. Citing “expected growth in the city’s highly elevated unfunded pension liabilities,” the rating agency cut the city to junk at Ba1.

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Chicago now has the dubious distinction of being the only city “in recent history” to carry such a low rating other than Detroit

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The negative outlook also reflects our expectation that Chicago's credit quality will weaken as unfunded liabilities of the Municipal, Laborer, Police, and Fire pension plans grow and exert increased pressure on the city's operating budget.

Chicago "Junking" Triggers $2.2 Billion Payment


BUT, BUT, BUT ...

Chicago has the third largest gross metropolitan product in the United States—approximately $532 billion according to 2010 estimates,[138][139] after only the urban agglomerations of New York City and Los Angeles, in the first and second place, respectively.

The city has also been rated as having the most balanced economy in the United States, due to its high level of diversification.[140]

Chicago was named the fourth most important business center in the world in the MasterCard Worldwide Centers of Commerce Index.[141] Additionally, the Chicago metropolitan area recorded the greatest number of new or expanded corporate facilities in the United States for calendar year 2014.[142]

Wikipedia: Chicago - Ecomomy

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OPINION:

One-Word: 'Surreal'.
.

a reply to: FarleyWayne

How can the economy be recovering yet pensions across the board are going belly up, and local governments are still having to give days off and cutting wages?

I just don't see what sector of the economy has experienced this explosive growth in every state in the US.

Someone has been lying to keep it rosy looking. The most I can say is "another one bites the dust."

a reply to: FarleyWayne

If I remember right they were trying to take all the pensions of every other city in IL to lump into theirs...saying it would be beneficial for everyone to be under the same pension...ya right...steal all the money from the few towns that do have their stuff squared away and then run off with it.

Paying somebody to not work for you is a bad idea.
Pension plans will kill cities and states.

originally posted by: Hoosierdaddy71
Paying somebody to not work for you is a bad idea.
Pension plans will kill cities and states.

LOL,

They do not care. They get a lifetime pension while you (public sector) get to pay higher taxes and work until you are dead to support those lifetime pensions.

Nice scam.

"Emanuel attacked Moody's decision to downgrade the city's credit, but his remarks illustrate the grave financial situation the city faces.

"This action by Moody's is not only premature, but it is irresponsible to play politics with Chicago's financial future"

funny how chicago has spent that state into a debt hole..while stealing and begging for every last penny. I used to live in southern IL. Can you imagine one of us waltzing into a bank and throwing a fit because they wouldn't loan us money, or had given a bad credit rating..I love how he complains the bank is being irresponsible..Maybe I will walk into my bank and claim they are being irresponsible by playing politics with Mrs. Neopan..you think that would work for me? Oh wait...it doesn't have to work because I don't have to beg the bank..I HAVE been responsible and kept my finances in check. Chicago is a joke. The southern half of the state should have split off from that cesspool of a city.

originally posted by: infolurker

originally posted by: Hoosierdaddy71
Paying somebody to not work for you is a bad idea.
Pension plans will kill cities and states.

LOL,

They do not care. They get a lifetime pension while you (public sector) get to pay higher taxes and work until you are dead to support those lifetime pensions.

Nice scam.

Hard to blame people that just want what was promised to them.
The pension system should have been addressed decades ago when they had time to fix it.

originally posted by: Hoosierdaddy71

originally posted by: infolurker

originally posted by: Hoosierdaddy71
Paying somebody to not work for you is a bad idea.
Pension plans will kill cities and states.

LOL,

They do not care. They get a lifetime pension while you (public sector) get to pay higher taxes and work until you are dead to support those lifetime pensions.

Nice scam.

Hard to blame people that just want what was promised to them.
The pension system should have been addressed decades ago when they had time to fix it.

No it isn't considering the state (really Chicago mostly) keeps voting for the same liberal Democrats.

Chitcago will go the way of all other corrupt, rust-belt cities. Wasn't there a rumor going around that they were gonna get nuked in a false flag? It may be their only salvation.

Say what? Another Liberal Bastion crumbles to the ground? But they're edumicated and and. . . . diverse and multi-cultural and Green and rank higher in equality!