Statehouse
2:43 pm
Tue December 10, 2013

S & P Improves Financial Outlook For Illinois

Credit wikimedia

A major credit-rating house has taken a more positive
outlook on Illinois debt than it has in years after last week's pension-reform
vote.
 
Standard & Poor's affirmed its A- rating on state debt backed by general tax
revenue Tuesday but revised its outlook from ``negative'' to ``developing.''
 
The ratings agency says ``developing'' means the rating could be raised or
lowered in the next two years. Analyst Robin Prunty says the change is positive
but risk remains because workers unions will likely sue over the pension law
Gov. Pat Quinn signed Thursday.
 
The law reduces state workers' contributions to pensions but cuts their
benefits in a 30-year plan to erase a $100 billion retirement-account deficit.
 
Quinn promised in a statement it would be the ``first of many positive
developments'' for Illinois.