Chicago Public Schools’ credit rating cut by Moody’s
BY SUN-TIMES STAFF REPORTS September 28, 2012 12:58AM
Updated: September 28, 2012 9:31AM
The Chicago Board of Education’s credit rating was lowered to A2 from A1 by Moody’s Investor Service, Reuters news service reported Thursday.
Moody’s said Chicago Public Schools hasn’t accounted for the “moderate” pay raises in the tentative agreement with the teachers union.
The rating agency also cited an “impending spike” in pension payments, according to Reuters.
“Significant budget adjustments will be necessary, but the demonstrated power of collective bargaining suggests that future budget controls may be difficult for the district to implement,” Moody’s said, according to Reuters.