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Chicago at Brink of Swaps Fee as Bond Ratings Fall: Muni Credit

Posted on September 15, 2014

Bloomberg

This article discusses interest rate swaps made by Chicago a decade ago that require the City to maintain a credit rating of at least Baa1, or financial institutions can terminate deals and demand payment. The Civic Federation said the deals were entered into when it seemed unlikely the City’s credit could fall so low, but now the City sits in a precarious position with a credit rating just one level above the termination point.