Illinois Upgraded by Moody’s in Pullback From Cusp of Junk
- Moody’s raises rating to Baa2 from Baa3 on improving finances
- Hike marks rating firm’s first upgrade of state since 1998
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Illinois’s credit rating was upgraded by Moody’s Investors Service as its tax revenue rebounds along with the economy and it receives an influx of federal aid, pulling the state back from the cusp of a junk-bond rating.
The upgrade of the state’s general-obligation debt to Baa2 from Baa3 “is supported by material improvement in the state’s finances,” Moody’s said in a statement Tuesday. It is the first time Moody’s has raised Illinois’s rating since 1998, according to the state, and leaves it two steps above non-investment grade.