Moody’s downgrades Chicago to junk

Challenge for Rahm Emanuel as rating agency’s move could trigger $2.2bn in claims
CHICAGO, IL - APRIL 6: Chicago's mayor and candidate for re-election Rahm Emanuel speaks to reporters during a news conference  at his campaign office April 6, 2015 in Chicago, Illinois. Emanuel is challenging Cook County Commissioner Jesus "Chuy" Garcia for Chicago Mayor in tomorrow's April 7th run-off election, after Emanuel was unable to get a majority vote in February's general election. (Photo by Joshua Lott/Getty Images)

Moody’s has stripped Chicago of its investment grade rating over its yawning pension plan deficit, potentially triggering up to $2.2bn of claims and setting back mayor Rahm Emanuel’s efforts to turn around the finances of America’s third-biggest city.