SAN FRANCISCO, July 17 Moody's Investors Service
lowered on Wednesday Chicago's general obligation and sales tax
ratings to A3 from Aa3 due to the city's large and growing
pension liabilities and budget pressures related to them.
The move affects $8.2 billion of Chicago's general
obligation and sales tax debt, Moody's said in a statement,
adding that its outlook is negative.
"The current administration has made efforts to reduce costs
and achieve operational efficiencies, but the magnitude of the
city's pension obligations has precluded any meaningful
financial improvements," the statement said.