Illinois Credit Rating Downgraded, Budget Fight Cited

Springfield (Reuters) — Illinois’ credit standing took another hit on Monday as Fitch Ratings downgraded the state’s rating for the first time on Governor Bruce Rauner’s watch, citing the deterioration of state finances during a four-month budget impasse. Illinois has no budget yet for the fiscal year that began on July 1, and the stalemate between Republican Rauner and Democrats who run the legislature has taken a bite out of state services. The one-notch downgrade from A-minus to BBB-plus, affecting $26.8 billion of general obligation bonds, leaves Illinois as the only U.S. state with a rating in the low investment grade triple-B level.