Weather Updates

Chicago Public Schools’ credit rating cut by Moody’s

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.

© 2014 Sun-Times Media, LLC. All rights reserved. This material may not be copied or distributed without permission. For more information about reprints and permissions, visit To order a reprint of this article, click here.