Illinois Faces Further Downgrades If Budget Deal Not Reached
- Even if latest plan passes, S&P sees no upgrade for two years
- Locked in gridlock, Illinois is the lowest rated U.S. state
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Illinois’s failure to resolve the nearly two-year political impasse over the budget could trigger further cuts to its bond rating, which is already the lowest among U.S. states, S&P Global Ratings said.
The report from the company comes as lawmakers weigh measures that would raise taxes, cut pension costs and borrow to cover a backlog of unpaid bills. The bi-partisan plan, put together by the leaders of the Senate, could stop the state’s rating from slipping further, though any upgrade wouldn’t happen during the next two years, S&P said.