Moody's cuts Chicago's credit rating to junk

Moody's cuts Chicago's credit rating to junk - Government News - Crain's Chicago Business: "Chicago today became the first victim of the Illinois Supreme Court's ruling on pensions, as Moody's Investors Service reduced the city's credit rating to junk bond status.
In a statement that specifically cited the court's May 8 decision overturning cuts in state pensions, the credit rating agency said the city's options now “have narrowed considerably.”
The downgrade is a blow to Mayor Rahm Emanuel, who during the mayoral election stressed his expertise to deal with the city's financial challenges. Emanuel labeled Moody's decision “irresponsible,” but did not deny its impact.
The downgrade is also a major blow to taxpayers because the city's cost of borrowing will rise, perhaps a lot, even if other bond ratings agencies do not follow Moody's lead.
If Fitch Ratings and Standard & Poor's Financial Services follow suit, the city's financial position could spiral downward—potentially forcing the city to come up with as much as $500 million quickly..."