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Moody's Cuts Chicago Rating

Discussion in 'Too Hot for Swamp Gas' started by G8trGr8t, Jul 18, 2013.

  1. G8trGr8t
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    G8trGr8t Premium Member

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    Again...no plan to address pension costs, still not funding required contribution per year so hole is getting deeper.

    will fed bailout of bankrupt states/cities be a campaign issue in 2014 or 2016


    http://abclocal.go.com/wls/story?section=news/local&id=9177082

    http://www.chicagobusiness.com/arti...ys-lowers-outlook-on-citys-main-credit-rating

    Will the fed backstop the states and buy their bonds??? QE to the moon......
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  2. mdgator05
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    No they didn't. They cut the outlook. They maintained their rating, as did both of the other major rating agencies. The thread title is false.
  3. diehardgator1
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    diehardgator1 Well-Known Member

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    If you cut there rating from stable to negative is that not lowering their credit rating?

    "Moody's Investors Service lowered its outlook on Chicago's main credit rating to negative from stable, citing the lack of any progress so far on pension reform.

    Read more: http://www.gatorcountry.com/swampgas/showthread.php?t=266403#ixzz2ZPduGMYM
  4. diehardgator1
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    diehardgator1 Well-Known Member

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    Moody's Cuts Chicago Debt Rating As Crime-Fighting Costs And Pension Deficits Buffet The Windy City

    "

    Moody's Investors Service reduced Chicago's debt rating by three steps late Wednesday to an A3 rating.
    Recommendations






    The credit ratings firm, part of Moody's Corporation (NYSE:MCO), said the third-largest city in the U.S. has a $36 billion retirement-fund deficit and "unrelenting public safety demands" on its budget, when it cut its rating of Chicago's general-obligation debt. Chicago's $7.7 billion in general-obligation bonds is now under a negative outlook, and Moody's indicated that another cut could be made.

    The New York-based firm had rated Chicago's general-obligation bonds at Aa3, or fourth highest. The company also cut its grades on the city's securities tied to sales-tax revenue and water and sewer debt, to A3 from Aa3 and to A1 from Aa2, respectively, affecting almost $3.9 billion in related debt.

    http://www.ibtimes.com/moodys-cuts-...ts-pension-deficits-buffet-windy-city-1351391
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  5. mdgator05
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    No. That is why if you read to the next paragraph it says "The New York-based credit rating agency maintained Chicago's solid investment-grade credit rating of Aa3 for now"

    Outlook is not the same as credit rating.
  6. diehardgator1
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    diehardgator1 Well-Known Member

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    This from another article


    "The credit ratings firm, part of Moody's Corporation (NYSE:MCO), said the third-largest city in the U.S. has a $36 billion retirement-fund deficit and "unrelenting public safety demands" on its budget, when it cut its rating of Chicago's general-obligation debt. Chicago's $7.7 billion in general-obligation bonds is now under a negative outlook, and Moody's indicated that another cut could be made.

    The New York-based firm had rated Chicago's general-obligation bonds at Aa3, or fourth highest. The company also cut its grades on the city's securities tied to sales-tax revenue and water and sewer debt, to A3 from Aa3 and to A1 from Aa2, respectively, affecting almost $3.9 billion in related debt.

    http://www.ibtimes.com/moodys-cuts-...ts-pension-deficits-buffet-windy-city-1351391

    Read more: http://www.gatorcountry.com/swampgas/showthread.php?t=266403#ixzz2ZPfx21Y6
  7. mdgator05
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    Actually, looking at other sources, it appears Moody's did lower their rating by 1 level today. The initial article posted was outdated (from 2012) and involved only the downgrade in outlook but not rating.
  8. G8trGr8t
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    edited the op to include correct story I heard on CNBC this am

    sorry was in a hurry to get to a meeting and posted the wrong link.
  9. G8trGr8t
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    and down goes Detroit....think that maybe Chicago unions are interested in the outcome of this bankruptcy???
  10. diehardgator1
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    diehardgator1 Well-Known Member

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    It will really be lowered now They just filed the big BK. The income could not keep up with the liberal left wing spenders.
  11. G8trGr8t
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    I think they knew Detroit was ready to file and that is why they cut Chicago rating. Small shot across the bow. Big gun will be saved for when bk court decides if unions get saved or not. if unions get bailed out and bondholders are left holding the bag in Detroit, look for Chicago rating to really plummet.
  12. mastoidbone
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    There are few greater dangers to our future then public employee pensions and unions.
  13. G8trGr8t
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    sad to say that student loan debt is becoming comparable. two cores of the left, go figure...they might run out of other peoples money

    it will be interesting when Detroit tries to get special tax exempt zones to recruit business from other locations (think Chicago) in their goal to diversify their economy. will the feds support reduced tax revitalization zones? If so Chitown could become ghost town next
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  14. gatordowneast
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    Semantics. Chicago's situation has a distinct odor. Whether it is the smell of chicken $hit or bull $hit, does it really matter? And what will they do about it? It's a democrat controlled town, so likely nothing.
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