The company said Friday that it downgraded Illinois’ general obligation bonds from A to A-minus and has given an A-minus rating to $500 million in general obligation bonds that the state plans to issue in February.
The move makes Illinois the worst credit risk in the country, tying it with California as S&P’s lowest-rated state, although California has a position outlook and Illinois’ is negative.
The ratings agency says that given the Legislature’s track record, it doesn’t think lawmakers will fully address the pension fund deficit, which was caused by decades of underfunding.
Treasurer Dan Rutherford says Illinois’ credit rating downgrade is likely to cost taxpayers more in interest when the state issues bond, and that lawmakers’ inaction has Illinois “headed for financial disaster.”
Gov. Pat Quinn said earlier Friday that rating agencies won’t give Illinois better marks until the General Assembly passes pension reform.
So let’s see Democratic Governor, Democratic State House and State Senate, Chicago hasn’t had a Republican Mayor since 1931. Do you think the Democrats running everything and IL having the worst Credit rating among states might, just might be tied together? I will make a stretch here, HELL YES!!!