Moody's slashes Chicago's rating.

Moody's has cut Chicago's general-obligation debt rating by three notches to A3, with the outlook negative, citing a retirement-fund deficit of $36B and "unrelenting public safety demands" on the budget. "Absent significant growth in the city's operating revenues, escalating pension funding requirements will increasingly strain the city's operating budget, as pension outlays compete with other spending priorities, including debt service and public safety," Moody's said.