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Fitch downgrades Chicago's ULTGOs and sales tax bonds
May 15, 2015 / 7:07 PM / 3 years ago

Fitch downgrades Chicago's ULTGOs and sales tax bonds

May 15 (Reuters) - Fitch Ratings downgraded its ratings on Chicago, Illinois’ unlimited tax general obligation (ULTGO) and sales tax bonds to ‘BBB+’ from ‘A-’ reflecting increased fiscal pressures following last week’s Illinois Supreme Court decision which limits the ability to modify pension benefits.

The court decision does not have a direct effect on the prospects for Chicago’s enacted pension reform, but it has amplified the city’s numerous fiscal challenges, Fitch said.

The events of last are likely to further limit Chicago’s investor or lender base, the ratings agency said. (Reporting by Kanika Sikka in Bengaluru)

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