Standard & Poor’s
Standard & Poor’s affirmed its A- rating on state debt backed by general tax revenue Tuesday but revised its outlook from “negative” to “developing.”
After Colleen Wasinger, R-Town & Country, inquired about the downgrade, St. Louis County Executive Charlie Dooley responded with a letter last week.
Standard & Poor’s has lowered St. Louis County’s bond rating from AAA to AA+. The ratings agency announced the news Thursday.
The U.S. government says Standard & Poor’s knowingly inflated its ratings on risky mortgage investments that helped trigger the 2008 financial crisis.
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.
The lawsuit accuses Standard & Poor’s of misleading investors by assigning its highest ratings to risky mortgage-backed investments during the years leading up to the crash.