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.