Moody's

Pensions
5:42 pm
Tue November 25, 2014

Pension Ruling "Credit Negative," But No Ratings Change

The final Illinois House vote on the 2014 pension overhaul.
Credit Amanda Vinicky

Credit ratings agencies have taken notice of the court ruling on Friday that tossed out Illinois’ law reducing workers’ pensions. But they’re not worried enough to lower the state’s rating.

Illinois’ credit rating remains unaffected by last week’s court ruling, which found a landmark pension law to be unconstitutional. But agencies are watching.

Credit ratings are important as, the lower the rating, the more it costs the state to borrow.

It’s also an important indicator of a state’s relative fiscal health.

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Pensions
11:31 pm
Sun September 7, 2014

Moody's: Illinois' "Daunting Pension Challenges" Faced By Its Local Governments Too

Sen. Daniel Biss, D-Evanston
Credit 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.

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Education Desk
6:08 am
Thu August 28, 2014

Illinois Schools In Pension Limbo

Credit WFIU/flickr

It’s expected to be some time before the courts decide whether Illinois can trim retirement benefits for public school teachers, university workers, and state employees. But the uncertainty continues to affect the credit outlook of schools and community colleges across the state.  

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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.