CHICAGO — Chicago’s heavy use of reserves and other non-recurring revenues to balance its proposed 2011 budget triggered a downgrade Thursday of its general obligation rating to AA-minus by Fitch Ratings.
The downgrade, with a stable outlook, is the latest in a series of negative rating actions for city. Fitch moved in August to lower its rating to AA with a negative outlook from AA-plus. Moody’s Investors Service in August downgraded its $6.8 billion of GOs one level to Aa3 with a stable outlook. Those actions followed Chicago’s release of a preliminary budget with a $654 million shortfall. Standard & Poor’s rates the city’s GOs AA-minus with a stable outlook.