credit rating

Pensions
6:29 pm
Wed July 23, 2014

Illinois' Credit Prognosis: Negative

Wall Street's view of Illinois' financial health has taken a hit, thanks largely to the state budget that took effect at the start of this month. Pensions also continue to be a drag. 

When Illinois Democrats passed the state's latest budget, many seemed to hold their nose. Credit ratings agencies are more direct: Standard & Poors has revised Illinois' credit outlook to "negative." 

It says the new budget "is not structurally balanced and will contribute to growing."

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'Credit Negative'
8:46 am
Wed June 4, 2014

Moody's: Budget Could Undo 'Significant Progress'

"I don't know how you can blame us or the governor for a negative bond rating," Senate President John Cullerton says. "The Republicans are the ones saying, 'Don't raise the taxes, we don't need that. Make structural changes,' whatever that means."
Credit Brian Mackey/WUIS

The credit rating agency Moody's says Illinois is at risk of undermining progress toward better finances. It says the failure to extend current income tax rates could lead to a worsening deficit.

Moody's says because lawmakers failed to stop an automatic tax cut scheduled for the end of the year, Illinois could have to increase its backlog of unpaid bills. The state already has the lowest credit rating in the nation.

Republicans say this shows Illinois needs to further reduce costs, but Democratic Senate President John Cullerton says there isn't that much left to cut.

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Statehouse
8:05 pm
Thu May 15, 2014

Rating Agencies Not Worried About Pension Hold

Credit ILGA.gov

Illinois' pension overhaul might be on hold, but credit ratings agencies say they're not concerned. A Sangamon County judge Wednesday ruled that reductions to public employees' retirement benefits will not go into effect next month, as planned.                                                  

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Statehouse
4:37 pm
Wed April 9, 2014

S&P: Next Two Months 'Critical' For Illinois Finances

Credit Brian Mackey/WUIS

A major credit rating agency says the next two months will be "critical" for the future of Illinois' finances. The key question is whether to make a temporary tax hike permanent.

Like most of the big credit rating agencies, Standard & Poor's has been bearish on Illinois finances — lowering the state's credit rating four times in recent years.

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Statehouse
7:19 am
Mon March 10, 2014

Illinois Pays Penalty For Bad Fiscal Image

Professor Martin Luby
Credit igpa

When it comes to finances, the State of Illinois has a poor reputation.   New research shows how the state's negative perception is costing taxpayers. 

Illinois already has the worst credit rating among states.  And while that adds to the cost of borrowing money, Illinois winds up paying even more because investors view it as risky of default.

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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

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Risk Analysis
7:00 am
Thu June 27, 2013

Report Questions Illinois' Low Credit Rating

  Governor Pat Quinn says Illinois' failure to solve its pension problem means the state will have to pay $130 million more in interest on bonds it sold Wednesday. But a new study is questioning Illinois' low debt rating.

Illinois got an average interest rate of five percent on the $1.3 billion bond sale — and had to turn away many potential buyers.

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