Illinois Downgraded to Lowest for Any State in Over a Decade
- Moody’s Investors Service and S&P lower state’s rating
- Decision spurred by political deadlock over the budget
Illinois Bonds Cut to 2 Steps Above Junk
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Illinois had its bond ratings dropped to levels not seen for a U.S. state in over a decade because of a protracted political deadlock that’s left it veering toward its second straight year without a budget.
Moody’s Investors Service cut its grade on about $28.8 billion of general-obligation and sales-tax debt by one level to Baa2, its lowest for a state since Massachusetts in 1992. S&P Global Ratings followed by dropping it one step to BBB+, one rank higher than Moody’s, and Fitch Ratings said it may cut its BBB+ rank. Moody’s and S&P have negative outlooks on Illinois, signaling more downgrades may follow if the standoff between Governor Bruce Rauner and the legislature isn’t resolved.