CHICAGO – Fitch Ratings lowered Chicago’s motor fuel tax revenue bond rating one level to BBB-plus ahead of the a planned $100 million refunding issue, in a move triggered by the agency’s downgrade of Illinois’ general obligation credit Monday.

Fitch notches the city’s motor fuel credit one level below the state because the bonds are primarily secured by a first lien on the city’s share of motor fuel taxes – assessed at 19 cents per gallon of motor fuel sold as well as a 2.5 cent surcharge on diesel fuel. The city’s share is distributed by the state based on a formula and is subject to an annual appropriation.

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