Moody’s May Still Lower Illinois to Junk Even If Budget Enacted
- State on “review for downgrade” even if veto overturned
- Budget “appears to lack” fix for pensions, Moody’s says
Bruce Rauner, governor of Illinois, delivers a budget address in the House Chamber of the State Capitol building in Springfield, Illinois, U.S., on Wednesday, Feb. 18, 2015.
Photographer: Daniel Acker/BloombergIllinois is at risk of becoming the first junk-rated U.S. state on record even if lawmakers overturn Governor Bruce Rauner’s veto and enact a budget, Moody’s Investors Service said.
The state’s rating, one step above speculative grade, is “under review for possible downgrade” after Illinois’s leaders failed to enact a “timely budget” and come to a political consensus over how to solve the state’s financial challenges, Moody’s said in an emailed statement on Wednesday. The Senate overrode Republican Rauner’s veto of budget bills, including a $36 billion spending plan and tax hike, on Tuesday, and the House is scheduled to vote on override measures on Thursday.