(Frontpage) Moody's Investor Service rated the city's upcoming $388 million bond issuance at Baa1, down from A3, a level set last year after an unusual triple downgrade.
Chicago will test the bond market for the first time since its bond rating dropped three notches, thanks to $1.9 billion in borrowings added Monday to the mountain of debt piled on Chicago taxpayers.
The lower rating means the city will have to pay high interest rates.
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Moody's concluded Chicago has the highest level of unfunded pension debt "of any rated U.S. local government."