Municipal Bond Credit Report: Junk-rated Chicago Schools Issue Bonds Solely by Property Tax and Not by the District's General Obligation Pledge

Municipal Bond Credit Report: Ratings for the new bonds, backed by a $45 million a year property tax levy approved by the Chicago City Council in 2015, were not available. Because that tax revenue can only be used to fund capital projects and not operations, CPS is hoping bondholders will consider the debt a safer bet than the district’s GO bonds. It is unclear if payments on these new bonds would be stopped in the event of bankruptcy… Link to Story