BREAKING Major Moody's Downgrade of Chicago

Moody's has  downgraded Chicago's credit rating down to junk staus, from "Ba1" to "Baa2."

 Moody's said it believes that "the city's options for curbing growth in its own unfunded pension liabilities have narrowed considerably."

"Whether or not the current statutes that govern Chicago's pension plans stand, we expect the costs of servicing Chicago's unfunded liabilities will grow, placing significant strain on the city's financial operations absent commensurate growth in revenue and/or reductions in other expenditures," the agency said in a release.

The downgrade affected $8.9 billion of general obligation, sales, and motor fuel tax debt, according to Moody's.

This is serious, the ratings agency said its downgrades could trigger up to $2.2 billion in accelerated payments on Chicago debt.

Moody's continues to maintain a 'negative outlook' for the city's debt.

-RW