Like the president he served, Rahm Emanuel, who was Barack Obama’s chief of staff before he became Chicago’s mayor,inherited a debt crisis and made it worse.
And this led Moody’s, theratings agency, to downgrade Chicago’s general obligation rating,which had been “stable,” to “negative,” according to Reuters.
Moody’s, in a statement, said: “Chicago’s administration has yet tounveil a detailed strategy for improving pension funding levels and isnot currently contributing the full annual required contributions.
“Should pension pressures continue to escalate absent a specific planof reform, the city’s credit quality will likely weaken.”
According to Reuters, the city of Chicago’s “unfunded liability forits fire, police, laborers and municipal pension funds is projected toreach $19.2 billion at the end of 2012, up from $14.6 billion at the end2009.”
It looks like the revolving door between Chicago and Washington isonly serving to ensure a race to the bottom between the two entities’ credit ratings.