Illinois credit woes continue: Fitch and Moody’s downgrade

On Oct. 19, credit rating agency Fitch
officially downgraded its rating
on $26 billion in Illinois general
obligation bonds from A- to BBB+, the worst rating of any state in the country.
On Oct. 22, Moody’s
followed suit
, downgrading Illinois bonds from A3 to Baa1. Moody
s had
warned earlier in the week that a skipped pension payment planned for November
could affect their rating of Illinois


In downgrading the states
debt, Fitch cited Illinois
weak economic recovery
compared to the rest of the country – long-term liabilities, ongoing budget
gaps, and reduced flexibility as a result of the budget impasse. Fitch also
lowered the rating from BBB+ to BBB for bonds on the Illinois Sports Facilities
Authority, McCormick Place, and Chicago
motor fuel revenue bonds.


Moodys also lowered its rating of sales-tax bonds from A3 to Baa1 and
lowered the Metropolitan Pier and Exposition Authority and Civics Center bonds
from Baa1 to Baa2. Moody
s outlook for Illinois and each additional obligation remains


Fitch downgrade:

            Moody’s downgrade: outstanding-27B-of-GO-bonds-to-Baa1–PR_337211

Chapin Rose

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