Moody's Investors Service downgraded the debt of Chicago Public Schools on the same day district teachers threatened to strike.
The group downgraded CPS's debt from B2 to B3, and called the district's financial condition "precarious" and "acute." Monday from B2 to B3, Moody's called CPS' financial condition "precarious" and "acute." The new rating is one level above C, which Moody's describes as "speculative (and) of poor standing, and are subject to very high credit risk."
Moody's says its revised rating "reflects the expectation that the district's credit pressures will intensify in the current fiscal year." It cited "strong employee bargaining groups that impede cost cutting efforts."