Fitch Ratings downgraded the Chicago Board of Education credit rating to junk Monday afternoon.
The move to downgrade the Chicago Public Schools' board from BB+ to BBB- comes two months after Moody's Investors Services lowered the district's credit rating to junk.
"The downgrade reflects the limited progress the Chicago Public Schools has made in addressing a structural budget gap approximating 20 percent of spending," Fitch noted in a statement. "The district is highly dependent on borrowing in the upcoming months to finance ongoing operations."
Fitch added that additional downgrades are possible if there are no "clear and meaningful progress made" over the next several months to handle the district's fiscal woes, including a more than $100 billion budget deficit.
"As Fitch points out, CPS has limited options for addressing our $1.1 billion shortfall, which makes it even more critical to reach a comprehensive budget solution with our partners in Springfield. Our priority will continue to be working toward that broad solution so that we don't have to make even deeper reductions or undertake more unsustainable borrowing," stated Ginger Ostro, CPS' CFO, in a statement.