Illinois Credit Rating

A major credit rating agency says Illinois' rating won't be lowered to ``junk'' but warns the state still faces serious financial challenges and long-term risks.

Moody's Investors Service on Thursday affirmed Illinois' current rating with a negative outlook, saying a downgrade remains possible in the next two years.

A major bond-rating agency says Illinois' fiscal challenges linger despite approval of the first state budget in two years.

Moody's Investors Service issued a report Friday. It notes that an income tax increase approved this month will generate nearly $5 billion more a year.

Even though the Illinois House voted to override the governor's veto to give the state its first budget since 2015, the state's bonds may still reach "junk" status, according to Moody's Investors Service.

In a press release, Moody's says they've placed the state's rating "under review for possible downgrade."

A day after the Illinois General Assembly ended it’s spring session without passing a budget — two bond rating agencies downgraded the state’s credit.

S&P Global Ratings says because of what it calls "unrelenting political brinkmanship … Illinois is now at risk of entering a negative credit spiral.” That means they think there’s a real possibility state government could run out of cash and default on its debt.

Gov. Bruce Rauner's administration says it wants to bypass a legal recommendation in order to expedite the resolution of its case on whether negotiations have stalled between the state and the largest state worker's union.

Rauner's administration says a quick resolution will help Illinois save $35 million to $40 million per month in higher health insurance costs for workers.

A major credit rating agency has downgraded Illinois' rating to two levels above ``junk'' status, citing the ``political gridlock'' that's prevented the state from getting a balanced budget for more than a year.

Moody's Investors Service lowered Illinois' rating Wednesday on $26 billion in debt by one level, to Baa2. The downgrade also affects $2.75 billion in revenue bonds.

Illinois could see its already worst-in-the-nation credit rating sink further ... all the way to "junk" status.