Moody’s Investors Service announced the downgrade of Illinois’ general obligation $27 billion dollar bond debt to A3 from an A2 and maintained the state’s negative outlook. As a result, Moody’s has also downgraded the ratings on related credits, which currently have about $5 billion in outstanding debt. “Illinois has hit a new record low with two major credit downgrades in the same week; this is unprecedented,” said Rutherford. “I am concerned about what tomorrow could bring.”
On Monday, Fitch Ratings lowered the credit rating from an A to an A-. Both rating entities cited the ongoing inability of the governor and the legislature to address the large and growing unfunded pension liability, most recently through the failure to pass pension reform during the regular legislative session that ended May 31st.
“This week has been a disgraceful reminder the current state leaders have unfinished business on pension reform,” said Rutherford. “There is an obvious lack of leadership in our great state.”