Illinois

The Chicago Park District's tight governance link to Chicago is taking a toll on the district's credit rating hit with a Moody's downgrade this week.

Chicago is making headway on gaining relief from $60 million in swap termination payments owed to banks after Moody's Investors Service downgraded its general obligation credit last week, according to Mayor Rahm Emanuel's administration.

JPMorgan, ranked second among senior managers last year, is losing about six mid- and senior level public finance bankers through a mix of departures, retirements, and one cut, according to industry sources.

Unions have weighed in with their brief as the Illinois Supreme Court prepares to hear oral arguments March 11 in the state's appeal of a lower court ruling voiding the legislative package that cut benefits for four of the state's five pension funds.

Chicago's latest rating downgrade paints the city further into a financial corner; Moody's Investors Service dropped the Windy City one notch to Baa2 from Baa1.

Moody's Investors Service delivered a blow to Chicago, downgrading the city one notch to Baa2 and maintaining a negative outlook, citing daunting pension obligations.

Litigation seeking to block Chicago from implementing its 2014 pension reforms until a legal challenge is decided was put on hold at the plaintiffs' request.

Standard & Poor's is warning that Chicago's "surprise" mayoral runoff could delay the city's response to a looming $550 million to $600 million hike in its public safety pension payments.

The Chicago Public Schools is seeking board approval to tinker with $700 million of debt in its portfolio.

Chicago Mayor Rahm Emanuel faces a run-off against his top challenger Jesus "Chuy" Garcia after failing to capture a majority of the vote in Tuesday's mayoral contest.

Moody's Investors Service expressed doubt that retirement benefit savings pitched by Gov. Bruce Rauner can be achieved in time to balance the proposed 2016 budget.

Municipal bond borrowing by Midwestern issuers picked up steam last year, rising by 6.9% to $63.5 billion as issuers loosened the reins a bit on new money borrowing and refundings recorded double-digit gains thanks to favorable interest rates.

Moody's Investors Service hit Sangamon County School District 186 with a downgrade and warned of the possibility for further deterioration in part due to pressures from the state's fiscal struggles.

Rating agency analysts and other market participants labeled Illinois Gov. Bruce Rauner's proposed fiscal 2016 budget, which relies on cuts to close a big deficit, an opening shot in a long game with an uncertain outcome ahead.

Public finance banker R. Ray Kljajic, a staple of Chicago's municipal bond community, is leaving Citi after a 25-year career there to pursue consulting and other opportunities in the infrastructure realm and in tax policy.

Republicans embraced Illinois Gov. Bruce Rauner's proposed budget as "bold" while Democrats who control the General Assembly slammed the depth of spending cuts and labeled a reliance on savings from pension reforms as "reckless."

Illinois Gov. Bruce Rauner unveiled a fiscal 2016 budget that would cut spending across state government to close an estimated $6 billion gap without tax increases.

Illinois Gov. Bruce Rauner is expected to propose deeply slash state spending to erase billions of red ink in the fiscal 2016 budget without new taxes, legislative leaders said.

Oral arguments in the case challenging Illinois' 2013 public pension overhaul will be heard March 11.

The Sterling, Ill., Park District is now teetering on the brink of junk bond status as it struggles with limited liquidity to deal with its fiscal pressures.