Chicago: The New Detroit? (CNBC)

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.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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