Moody’s Investors Service has downgraded to A3 from Aa3 the rating on the City of Chicago’s (IL) $181 million of outstanding rated motor fuel tax debt. The outlook has been revised to negative.
Surprises no one. Barely qualifies as news actually.
The City’s broke. Unemployment (real unemployment, the U6 number) is out of control and people simply don’t have the means to support driving when they don’t have to. Tie that in with Springfield’s ability and desire to continue to kick-the-can down the road and Chicago may just get screwed on its portion of the fuel tax.
It’s generally dumb anyway that Chicago gets a kick-back on the state’s fuel tax anyway as the city has it’s own fuel tax. It’s just robbing Peter to pay Paul. Round and round the money goes.