Illinois debt no longer is in danger of being downgraded to junk level in the view of one of the major ratings agencies—the first dividend of sorts from passage of a new state budget and tax hike last week.
S&P said its actions “reflect that following Illinois’ enactment of a fiscal 2018 budget (and subsequent override of a veto by Gov. Bruce Rauner) . . . the odds of its general obligation credit rating falling to below investment grade within the next year has substantially diminished.”
S&P’s action won immediate praise from Senate President John Cullerton. Said his spokesman, “The entire point of this balanced budget was to end the chaos and move the state toward the stability it desperately needs. Those efforts appear to have been recognized and appreciated, but obviously more work is needed to get Illinois back to greatness.”