Chicago Bonds Hold Up In Light Trading After Downgrade

wochit news
November 12, 2013 AT 1:09 PM
U.S. municipal bonds issued by Chicago held up in light trading even as the city's debt suffered another triple-notch ratings downgrade on mounting concerns about its public pension liabilities. Late on Friday, Fitch Ratings cut its credit rating on Chicago's $8 billion of unlimited tax general obligation bonds to A-minus from AA-minus, citing the city's lack of meaningful fixes for its underfunded city worker retirement system. In one of a handful of small Chicago debt trades on Monday, some of the city's 30-year taxable bonds, due January 2040, opened lower at 92.6 cents on the dollar from 93.5 cents on Friday.