Moody’s also lowered ratings on the state’s sales-tax bonds – known as Build Illinois – to “Baa1” from “A3”, and on the state’s subject to appropriation bonds (issued by the Metropolitan Pier and Exposition Authority and for the state’s Civic Center program) to “Baa2” from “Baa1”, according to the release.
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“The downgrades reflect weakening of the state’s financial position during 2015 and our expectation that an ongoing budget stalemate will lead to further deterioration”, analysts Ted Hampton and Nicholas Samuels wrote in the Thursday report.
“President Cullerton joins the chorus of Republican leaders and rating agencies in asking the Governor to set aside his personal agenda in favor of a budget plan that reverses the damage and dysfunction of the a year ago”, Cullerton said in the statement. Those who point the finger at Rauner for the downgrades should remember the state historically suffered similar credit rating blows during the tenures of former governors Pat Quinn and Rod Blagojevich, she said.
Moody’s Investors Service cut the state’s general obligation bond rating one notch to Baa1 with a negative outlook on Thursday.
A spokeswoman for Rauner said the latest downgrade confirms his contention the state needs pro-business and structural reforms that Democratic lawmakers have rejected.
Because of court orders and state law, a few bills are being paid.
Governor Rauner’s office says he has agreed to terms on new four-year agreements with three more unions representing state workers.
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“They will find a clearing level even at triple-B, but they will be penalized for it”, Amodeo said.
