{"id":5780,"date":"2015-05-12T00:00:00","date_gmt":"2015-05-12T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/05\/moodys_investors_group_drops_c"},"modified":"2022-03-10T16:38:52","modified_gmt":"2022-03-10T22:38:52","slug":"moodys-investors-group-drops-c","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/","title":{"rendered":"Moody\u2019s Investors Group Drops City of Chicago\u2019s Credit Rating to Junk"},"content":{"rendered":"\n<p>Credit rating agency Moody\u2019s Investor Service has downgraded the credit rating for the city of Chicago, Illinois to junk, reducing the rating of its $8.1 billion of general obligation by two to Ba1, along with a negative outlook. That\u2019s right under investment grade.<\/p>\n<p>The reduction lets banks demand that the Illinois city pay back the debt it owes them early. It also makes Chicago vulnerable to fees to terminate swap contracts. <\/p>\n<p>Aside from the Michigan city of Detroit, Chicago is the lowest-rated of any large city in the U.S. Moody\u2019s downgrade comes after the Illinois Supreme Court decision over retirement benefits last week. The court unanimously decided that a state pension law to reduce government worker benefits, which would get rid of $105 billion in retirement system debt, was unconstitutional. Now, there is skepticism over whether Chicago can keep its $20 billion pension fund short fall under control. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/\"  title=\"Continue Reading Moody\u2019s Investors Group Drops City of Chicago\u2019s Credit Rating to Junk\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Credit rating agency Moody\u2019s Investor Service has downgraded the credit rating for the city of Chicago, Illinois to junk, reducing the rating of its $8.1 billion of general obligation by two to Ba1, along with a negative outlook. That\u2019s right under investment grade. The reduction lets banks demand that the Illinois city pay back the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3845,3882],"tags":[],"class_list":["post-5780","post","type-post","status-publish","format-standard","hentry","category-credit-rating-agencies","category-moodys"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Moody\u2019s Investors Group Drops City of Chicago\u2019s Credit Rating to Junk &#8212; Investor Lawyers Blog &#8212; May 12, 2015<\/title>\n<meta name=\"description\" content=\"Credit rating agency Moody\u2019s Investor Service has downgraded the credit rating for the city of Chicago, Illinois to junk, reducing the rating of its $8.1 &#8212; May 12, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Moody\u2019s Investors Group Drops City of Chicago\u2019s Credit Rating to Junk &#8212; 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Investor Lawyers Blog &#8212; May 12, 2015","twitter_description":"Credit rating agency Moody\u2019s Investor Service has downgraded the credit rating for the city of Chicago, Illinois to junk, reducing the rating of its $8.1 &#8212; May 12, 2015","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Moody\u2019s Investors Group Drops City of Chicago\u2019s Credit Rating to Junk","datePublished":"2015-05-12T05:00:00+00:00","dateModified":"2022-03-10T22:38:52+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/"},"wordCount":550,"articleSection":["Credit Rating Agencies","Moody's"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/","url":"https:\/\/www.investorlawyers.com\/blog\/moodys-investors-group-drops-c\/","name":"Moody\u2019s Investors Group Drops City of Chicago\u2019s Credit Rating to Junk &#8212; 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