State Credit Rating Lowered in IL
SPRINGFIELD, IL - Continuing pension problems have earned Illinois another reduction in its credit rating.
Standard & Poor's Ratings Services announced Wednesday that it is lowering Illinois' rating a notch. The decision is based on weak funding for government pensions and a "lack of action on reform measures."
Only California has a lower rating from S&P, but the service says the outlook for California is positive. Illinois falls into the "negative outlook" category.
The Moody's rating service has also warned that it may lower the state's rating.
Lower ratings can raise the interest rate Illinois must pay when borrowing money.
Illinois retirement systems have the country's largest gap between the money available and what they'll eventually pay out in pensions. Officials have been deadlocked for months over what to do.
Illinois Governor Pat Quinn issued a statement upon learning of the lowered credit rating, a portion of which says, "Over and over again this summer, I have made it clear that if we do not act on pension reform, the state of Illinois will suffer the consequences. Now it has..."