Chicago Public Schools Announce $1 Billion in Borrowing, Despite Junk Bond Status

Despite Moody’s Investor Service September downgrading of CPS bond issues to junk status, the Chicago Board of Education has announced it intends to market an additional $1 Billion in bonds to finance new school construction, renovation projects, and equipment purchases. The Chicago City council has approved setting aside a pool of property tax revenues to finance repayment of these bonds.