A major credit rating agency has downgraded Chicago Public Schools' rating deeper into "junk" status. Fitch Ratings lowered the rating to B-plus, citing the district's multimillion-dollar budget deficit and huge unfunded pension liabilities. The previous rating was BB-plus.
Fitch Ratings says that without action, CPS could deplete its reserves by the end of the next fiscal year and "likely exhaust available lines of credit." CPS is scheduled to issue $875-million in bonds next week.
The move comes as Republican Gov. Bruce Rauner and GOP lawmakers pitch legislation to allow the state to take over the nation's third-largest school district. But the idea was immediately shot down by Democrats, including Chicago Mayor Rahm Emanuel.
Standard & Poors also lowered the district's rating last week.
