Just a short time after Republican legislative leaders announced a proposal on Jan. 20 to help Chicago Public Schools with their ongoing financial crisis, Fitch Ratings downgraded CPS’ credit rating to B-plus, moving CPS deeper into “junk” status.
It’s the latest mark against a school district facing a nearly $500 million budget shortfall, and which faces thousands of teacher layoffs and the potential for a massive strike.
Fitch Ratings lowered the rating due to the district’s ongoing budget deficit and unfunded pension liability.
The Republican-backed proposal allows for the creation of an independent authority to assume control over CPS, which is consistent with current state law governing all other school districts in Illinois.
Last week, Standard and Poor’s lowered CPS’ rating two notches to the agency’s B-plus status.