Illinois Debt Cut by S&P After No Action on Pension Funding
This article is for subscribers only.
Illinois, the U.S. state with the worst-funded pension system, had the rating on its general-obligation debt cut one level by Standard & Poor’s and may face more downgrades.
The change to an A rating followed state lawmakers’ failure to agree to reduce retirement costs during a special session Aug. 17. The outlook for the state’s debt, which now has S&P’s sixth-highest grade, is negative. California, with an A-ranking, one level below Illinois, remains S&P’s lowest-rated state.