(Bloomberg) — Chicago had its credit outlook raised by Fitch Ratings to stable because of the city’s work to shore up its retirement system and avert insolvency for the pensions that don’t have enough money to pay the benefits promised.
“The outlook revision to stable from negative reflects the recently enacted material increase in funding to the city’s pensions,” Fitch analysts led by Arlene Bohner said in a report. “The chronic underfunding of pensions over many years has resulted in a high and growing long-term liability burden and constrained expenditure cutting flexibility.”
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