Amanda Vinicky / WUIS / Illinois Issues

A credit analyst with Moody's says Illinois' bond rating will remain unchanged, despite the state entering its third month without a budget. But the chances of a downgrade increase the longer gridlock continues.

Illinois has the nations' lowest credit rating -- a grade that symbolizes its fiscal troubles, and adds to them; a lower score makes it costlier to borrow.

But the rating won't drop any further just yet.

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.


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.

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.

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.


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.  

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.