Moody's Corporation

Rated: Junk. More bad news for CPS

Rated: Junk. More bad news for CPS

This week has brought more grim news for Chicago taxpayers. Fitch Ratings on Monday downgraded the debt of Chicago Public Schools to junk status. It was not a surprise. Moody's Investors Service dropped CPS into the junk category in May. It seems only a matter of time before Standard & Poor's does the same. S&P this month cut its rating on CPS by two notches with a negative outlook. Fitch stated the obvious: "Most options for relief are dependent on actions by the state, which is plagued by political disagreements and its own challenged financial position." The move by Fitch closely followed the decision last week by the Chicago Board of Education to authorize up to...