Fitch puts Chicago ratings on review for possible downgrade
CHICAGO, June 26
CHICAGO, June 26 (Reuters) - Fitch Ratings on Wednesday put credit ratings on nearly $8.7 billion of outstanding Chicago debt on a watch list for a possible downgrade, citing the city's growing unfunded public pension liability.
"The unfunded liabilities recorded in the city employees' pension funds continue to rise without a corresponding increase in funding," Fitch said in a statement, pointing to a combined funding ratio for the city's four retirement funds at only 35.2 percent at the end of 2012.
Fitch placed Chicago's AA-minus general obligation and sales tax revenue bond ratings and A-plus commercial paper notes rating on the watch list.
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video