Citing the city’s glacial economy, Fitch Ratings cut the city of Chicago’s bond rating. In addition to the Windy City’s economic downturn, Fitch also cited its inability to resolve its mounting union pension concerns. Specifically, Chicago’s unlimited tax general obligation (ULTGO) bonds and its sales tax bonds were both dropped to an A- rating from AA-. While this downgrade doesn’t mean Chicago will follow Detroit down the bankruptcy trail, it does show another of America’s major cities may be teetering on the abyss. Investors would be wise to seek out other bond options at this point.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: