Standard & Poor’s affirmed its A- rating on state debt backed by general tax revenue Tuesday but revised its outlook from “negative” to “developing.”
Illinois now has the lowest credit rating of any state in the country, largely because of its unpaid bills and $100 billion in unfunded retirement plans for state employees.
Nixon sent lawmakers a letter Monday that said enacting the tax cuts could jeopardize Missouri’s AAA-credit rating. Nixon says credit rating agencies noted the legislation in reports this month.
The downgrade, from A+ to A, leaves Illinois with the nation’s second-lowest rating from S&P.
Illinois’ credit rating is already the lowest of any state. The decline would make it more expensive to borrow money.
Illinois has been given the lowest credit rating of any state in America by Moody’s Investors Service.
Despite federal debt downgrade.