S&P affirms Chicago's rating in wake of pension funding plan

Standard & Poor's Global Ratings on Monday affirmed Chicago's credit rating, citing Mayor Rahm Emanuel's new plan to save the city's largest pension fund from insolvency with a new tax on water and sewer use. Calling the plan "a positive step," S&P kept Chicago's general obligation rating at BBB-plus with a negative outlook, noting it could be revised to stable once the tax portion of the plan is formalized. S&P warned in June that the nation's third largest city could be subjected t