credit rating

Amanda Vinicky

Credit ratings agencies have had swift reactions to Friday's state Supreme Court decision that found Illinois' 2013 pension law unconstitutional.

Illinois' was expecting to save billions by reducing state workers, teachers' and university employees' retirement benefits. But not anymore, thanks to an unanimous decision by the state's high court tossing the law.

Amanda Vinicky

There's a reason analysts say Illinois has the nation's lowest credit rating. It has the nation's largest unfunded pension liability. A 2013 law that’s facing a challenge before the Illinois Supreme Court is intended to help.

Illinois is facing a budget hole in the billions, thanks to a rollback of the income tax. If the high court tosses out the pension law, there'll be more fiscal pressure.

Analysts like Moody's Ted Hampton say the rating won't likely drop further, even if the justices toss the law because the rating already presumes the law cannot be implemented.

flickr/dborman

A major credit rating agency has come out with a blunt assessment of Gov. Bruce Rauner's proposed budget for Illinois.

The budget Rauner presented last week calls for massive cuts in state spending -- without any increase in taxes.

Moody's Investor Service dismisses the chance that parts, let alone all, of the plan will ever become a reality.

ILGA.gov

A new report from Moody's investors service says Illinois still faces "daunting pension challenges" despite a 2013 law intended to curb the state's pension costs. So do its cities. 

The Moody's report lays it out starkly: Illinois' pension burden is significantly higher than other states. And yet Illinois' legal framework gives "very limited" flexibility for dealing with that.

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."

John Cullerton
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.

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.                                                  

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.

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.

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

  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.