Illinois Comptroller Susana Mendoza
Illinois’ credit rating got upgraded from worst in the country to tying with New Jersey for the worst.
For a seventh time in two years, Illinois’ credit rating was increased Thursday with the announcement from S&P Global ratings.
“The upgrade on the [general obligation] debt reflects our view that Illinois’ commitment and execution to strengthen its budgetary flexibility and stability, supported by accelerating repayment of its liabilities, rebuilding its budget stabilization fund to decade highs; and a slowing of statutory pension funding growth, will likely continue during the outlook period,” S&P Global Ratings credit analyst Geoff Buswick said.
Illinois’ outstanding $27.7 billion GO bonds were upgraded from BBB+, the worst in the country, to A-, tied with New Jersey GO bond ratings. The last time Illinois had the A- rating was in December 2015.
The state’s appropriation-backed debt saw an increase Thursday from BBB to BBB+ and moral obligation debt from B+ to BBB-. Build Illinois bonds, paid for with gas tax and other fee increases, goes from A- to A.
Gov. J.B. Pritzker and other statehouse Democrats heralded the news as a sign of their budget management.
“Our continued fiscal responsibility and smart budgeting will save Illinois taxpayers millions from adjusted interest rates, and my partners in the General Assembly and I look forward to building on that success,” Pritzker said in a statement.
More here.
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