Rating agency sours on Illinois' financial outlook
SPRINGFIELD, Ill. (AP) -- A major
credit-rating agency says it's relabeling Illinois' financial outlook to
"negative" from "stable" based on the state's failure to
enact pension reform.
Fitch Ratings adjusted its opinion of Illinois' credit-worthiness Friday. Fitch is
one of three agencies that monitor state finances and grades ability to repay
Fitch says the outlook for the state's rating, currently "A,"
could improve if Illinois
can agree to resolve a $96 billion deficit in its pension programs. Gov. Pat
Quinn's latest effort fizzled this week.
The outlook gives an indication of how a state's grade might move in the
coming months. "Negative" means Fitch could downgrade Illinois' credit. That
would mean a higher interest rate to borrow money.
outlook matches that of the two other credit rating companies.