Fitch Ratings downgraded Chicago's bond ratings because of its overwhelming pension debt, which now sits at about $19.5 billion, and its inability to come up with a solution to the problem.
Fitch dropped the city's rating from AA- to A- on $8 billion in general obligation bonds, which are backed by property taxes. It also dropped the rating on $497.3 million in sales tax bonds to A- from AA-, and to BBB+ from A+ on $200 million in commercial paper notes.
Fitch noted in its report that even though the city has made recent improvements in other aspects of its credit profile, the budget is still tight.
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