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Bond-Rating Agency Downgrades Chicago Public Schools Debt

The Prof

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A leading bond-rating agency has downgraded the Chicago Board of Education's debt in the wake of the settlement of the Chicago Teacher's Union's recent strike.

Moody's Investor Service had already downgraded the Chicago Public Schools' bond rating outlook to "negative" from stable in July. On Thursday, the rating agency cited its "view that the district will be hard-pressed to make the budget adjustments necessary to close an estimated $1 billion budget gap for fiscal 2014," in downgrading $6.4 billion in outstanding bond debt.

A ratings downgrade increases the cost of borrowing for a government agency.

The schools' downgrade to an A2 rating "reflects a weakened financial profile" born of depletion of reserves, a coming jump in pension payments after three years in which state law was changed to reduce the payments temporarily, slow payment of state money--and the recent strike, Moody's said in a release.

"If progress is not made toward improving the financial condition and liquidity of district operating funds, or if challenges arise in making the required pension contributions, the district's general obligation credit quality will be impaired," according to the release.

Strikes by other unions, more delays in state funding or "unmanageable" increases in pension costs could result in further ratings downgrades, Moody's warned.

Bond-rating agency downgrades CPS debt - Chicago Tribune

illinois, led by cook county, is fast becoming the next california which is the next greece

moodys downgraded the state in january

Moody's Downgrades Illinois Credit Rating To Worst In Nation | Progress Illinois

so speaker madigan, on behalf of his bosses, killed pension reform---then deposited TWO hundred thousand dollar checks from the slavemasters at the seiu

Madigan reports $100,000 more from union with members opposed to pension reform - Sun-Times

governor quinn raised income taxes 67% in 2011

Illinois Lawmakers Approve 66% Tax Hike « CBS Chicago

mayor rahm won his highly anticipated carrot-and-stick wellness program---participate or pay

Shape Up or Pay Up: Emanuel | NBC Chicago

one of the first clinics set up by the meddling mayor and his know-it-all nannies was in a garbage truck garage

City Workers Appalled At Wellness Clinic Set Up In Garbage Truck Garage | Chicago Chronicle

he doesn't like chicken sandwiches

Emanuel goes after Chick-fil-A - Sun-Times

but he loves calypso louis, jew hater

Rahm welcomes help from Farrakahn, ignores anti-Semitic remarks - Sun-Times

cps is submerged under a "wave of violence" which sees several chicago public school kids killing several chicago public school kids each month

Rahm Emanuel Mourns 260 Chicago Children Killed By Violence - HuffPo

but the out-of-control gang violence goes back well before rahm the ram

AFP: Crime wave leaves dozens dead in Chicago

which only makes barack obama's promotion of crony arne duncan from ceo of cps to cabinet level ed secty all the more inexplicable and bizarre

so obama is pushing as his top priority (he led his opening statement in the doleful debate with the call) the increased investment in education

which to barack obama only means greater investment in teachers unions

last tuesday: Arne Duncan: 'Everybody won' in Chicago teacher strike | The Daily Caller

everybody?

not rahm the ram who got his horns twisted off by the kindergarten, art and pe teachers

not the kids who can't even get to and from class safely

not the taxpayers, ask moodys

obama's cabinet's view of "everyone" adds up to an awful lot less than 47%

the windy city, city of big shoulders, has been satisfied with about as much one party rule as we're gonna see this side of leningrad, 1917

its citizens are responsible for the consequences

jesse jackson, jr, announced he's running in november to keep his seat

say hi to him---if you see him
 
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Isn't this the Community Barrack Obama organized?

What could possibly have gone wrong?

But, come to think of it, the US credit rating was downgraded a couple of times under his watch as well.

Perhaps he should choose much smaller communities to organize.
 
Isn't this the Community Barrack Obama organized?

What could possibly have gone wrong?

But, come to think of it, the US credit rating was downgraded a couple of times under his watch as well.

Perhaps he should choose much smaller communities to organize.

Yes Obama's community organizer work in the late 80s is totally related to this.

Totally.
 
Oh, it was sarcasm??

Why didn't you say so?

Because suggesting that a local community organizer who worked with some Catholic chruchs in the late 80s for three years has anything to do with bond ratings in 2012 should be something instantly recognized as ridiculous and sarcastic.
 
Because suggesting that a local community organizer who worked with some Catholic chruchs in the late 80s for three years has anything to do with bond ratings in 2012 should be something instantly recognized as ridiculous and sarcastic.

Or, I wasn't familiar with the Community Organizer's work with the Catholic Church.

He got them organized as well, did he?
 
Or, I wasn't familiar with the Community Organizer's work with the Catholic Church.

He got them organized as well, did he?

Are you serious? Seriously? Is this really happening?
 
Well, I would like to point out that an A2 credit rating means that one has a "Very strong capacity to meet financial commitments." (S&P | Ratings Credit Ratings Definitions & FAQs | Americas) I would also like to state that Chicago public schools, even with this downgrade, still have a better credit rating than a lot of countries. (List of countries by credit rating - Wikipedia, the free encyclopedia)

It's not a strong argument when Bulgaria gets a positive credit rating and the USA gets a negative.

It's time for Hope, and definitely a Change.
 
It's not a strong argument when Bulgaria gets a positive credit rating and the USA gets a negative.

It's time for Hope, and definitely a Change.

Bulgaria has a lower rating than the United States. And if you're looking for blame on our credit rating why not blame the Republican who took it hostage, hell he even said so himself that they used the debt ceiling and default crisis as a way to gain political concessions.

“I think some of our members may have thought the default issue was a hostage you might take a chance at shooting,” he said. “Most of us didn’t think that. What we did learn is this — it’s a hostage that’s worth ransoming. And it focuses the Congress on something that must be done.”

McConnell Admits To Taking Debt Ceiling 'Hostage': It's 'Worth Ransoming' | ThinkProgress
 
Bulgaria has a lower rating than the United States. And if you're looking for blame on our credit rating why not blame the Republican who took it hostage, hell he even said so himself that they used the debt ceiling and default crisis as a way to gain political concessions.



McConnell Admits To Taking Debt Ceiling 'Hostage': It's 'Worth Ransoming' | ThinkProgress

Did you reafd the article from which you got that link? be sure you get direct quotes from everyone and be sure they are clewar in what they are saying.

You do know that Obama held control over the House and Senate for two years, right?
 
Did you reafd the article from which you got that link? be sure you get direct quotes from everyone and be sure they are clewar in what they are saying.

You do know that Obama held control over the House and Senate for two years, right?

How is that relevant to a debate and event that took place when that was not the case?
 
Because suggesting that a local community organizer who worked with some Catholic chruchs in the late 80s for three years has anything to do with bond ratings in 2012 should be something instantly recognized as ridiculous and sarcastic.

ACORN is a Catholic church. There are miracles.

I wonder who in their right mind would buy school bonds, or any bonds, related to Chicago?
 
Given the fact that Chicago schools are running out of money, their credit got dumped.

The fact that they just gave teachers making an average annual salary of $76,000 a 16% raise over the next 4 years, Chicago's debt will only get much worse.

Chicago has the fiscal responsibility of a 3 year old.

Sadly, the state of IL. is much worse.....
 
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