Chicago Public Schools' latest bond issue got a green light from one of Wall Street's rating agencies today, but with an asterisk the size of Mt. Rushmore, according to a Crain’s Chicago Business commentary today. Fitch Ratings said that it gave an “A” rating to a $500 million CPS offering because the issue has a dedicated revenue source — a $45 million property tax hike recently approved by the City Council — that's legally "insulated" from a possible CPS "bankruptcy.” The agency used the word bankruptcy in its statement, something CPS chief Forrest Claypool has sworn is not coming but that the district alluded to itself in bond documents earlier this week as a "hypothetical" possibility. Despite denials from Claypool and Mayor Rahm Emanuel that bankruptcy is on the way, even a passing reference ought to raise some eyebrows, according to the commentary. Illinois Gov. Bruce Rauner (R) has from time to time urged bankruptcy as a solution to CPS' woes, suggesting that such a step would allow the district to restructure its contract with the Chicago Teachers Union.
