"Good news from Illinois is hard to come by these days, either at the state or municipal level. CNBC reports today that the state’s nerve center is continuing its downward slide: Fitch has downgraded Chicago’s bond ratings, citing poor economic growth and total inertia on its union pension liabilities:
The credit ratings agency said it downgraded $8 billion in Chicago’s unlimited tax general obligation (ULTGO) bonds to A- from AA-. It also cut $497.3 million sales tax bonds to A- from AA-, and downgraded $200 million commercial paper notes, 2002 program series A (tax exempt) and B (taxable) to BBB from A.
Fitch said its rating outlook on the city’s securities is “negative.”…
