(Adds background; recent bond downgrades)
By Mary Wisniewski
CHICAGO, May 15 (Reuters) - Chicago Mayor Rahm Emanuel on Friday named Carole Brown, a managing director at Barclays , as chief financial officer for the financially troubled city.
Brown, who heads Barclays’ Midwest municipal practice, replaces outgoing CFO Lois Scott. Brown had previously served as chair of the Chicago Transit Authority board.
The announcement comes after a tumultuous week of credit downgrades for the nation’s third largest city.
“Carole Brown brings decades of financial experience to the City of Chicago,” said Emanuel in a statement. He cited her experience and reputation as a “tough, but honest financial manager.”
Moody’s Investors Service lowered the city to a junk rating on Tuesday. Standard & Poor’s Ratings Services also downgraded it this week to ‘A-', while Fitch Ratings cut Chicago’s debt one notch on Friday to ‘BBB+'.
The downgrades followed last week’s ruling by the Illinois Supreme Court which overturned the state’s pension reform law. That decision narrowed Chicago’s ability to curb its own $20 billion unfunded pension liability, Moody’s said.
Prior to joining Barclays, Ms. Brown was with Siebert Brandford Shank & Co LLC and Mesirow Financial. Brown also was a member of Emanuel’s first term transition team. (Reporting by Mary Wisniewski; Editing by Meredith Mazzilli and Christian Plumb)