The city of Chicago's credit rating has been downgraded, again.
Standard & Poor's lowered the city's credit rating by two notches on Thursday, moving it from an A+ rating to A-. That's three notches above junk status.
Standard & Poor's decision comes after Moody's Investor Services lowered the credit ratings of the city of Chicago, the Chicago Public Schools and the Chicago Park District to junk status earlier this week. The downgrades follow last Friday's Illinois Supreme Court decision striking down the state's 2013 pension reform law and will make it more expensive for the city to borrow money.
In its statement, Standard & Poor's noted, among other things, that Moody's decision to drop the city's credit rating to junk status could negatively impact Chicago Mayor Rahm Emanuel's proposed efforts to move hundreds of millions of dollars in variable-rate debt to fixed-rate debt as a means to help tackle the city's fiscal issues.