Moody’s pushes CPS credit rating deeper into junk status

SHARE Moody’s pushes CPS credit rating deeper into junk status
cpslogo1.png

Moody’s Investors Service pushed the debt of the Chicago Public Schools further into junk territory on the same day the district’s teachers threatened to strike.

In downgrading its debt Monday from B2 to B3, Moody’s called CPS’ financial condition “precarious” and “acute.” The new rating is one notch above the C level Moody’s describes as “speculative [and] of poor standing, and are subject to very high credit risk.”

Moody’s said its revised rating “reflects the expectation that the district’s credit pressures will intensify in the current fiscal year.”

In announcing its rating move, Moody’s referenced “strong employee bargaining groups that impede cost cutting efforts.”

The Chicago Teachers Union announced Monday its members voted 95 percent in favor to authorize a strike if necessary to obtain a new contract.

The Latest
The U.S. State Department issued a “worldwide caution” alert last week, saying it had learned of an “increased potential for foreign terrorist organization-inspired violence against LGBTQI+ persons and events.”
The WNBA standings after the first week of games have the Sky sitting pretty at sixth. While this might inspire hope for some, the application of a little critical thinking leads to a different conclusion.
Some scattered storms are expected to pass through the area Tuesday morning, but conditions may worsen in the evening with the possibility of severe thunderstorms and gusty winds, the National Weather Service said.
Many students carried gold flyers with images of a crown, bullets and bombs, symbolizing the Crown family, who are benefactors to the Art Institute and who students say invest in weapons manufacturers. They tore the flyers on stage.