Chicago Mayor Pushes Moody’s to Rescind City’s Junk-Bond Rating
- City is largest in U.S. company rates below investment grade
- Chicago has already stopped hiring Moody’s to grade deals
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Chicago is stepping up its battle with Moody’s Investors Service ahead of a $1.2 billion bond sale next week.
Mayor Rahm Emanuel, a Democrat who pushed through a record tax increase to shore up the city’s finances, asked the company to pull its junk rating on Chicago’s debt, saying it’s exaggerating the risks to bondholders and failing to recognize steps he’s taken. Chicago has already stopped hiring Moody’s to rate new bond deals, relying instead on rivals S&P Global Ratings and Fitch Ratings that continue to consider its debt investment grade.