Can Illinois’ dead-last credit rating get any worse?

According to ratings agency Standard & Poor’s 500 Illinois’ credit rating is the worst among the 50 states. We are the only state in the country with an A- credit rating – on par with nations such as Botswana, Latvia and Slovenia And Illinoisans should be aware of the possibility that we could be headed...

According to ratings agency Standard & Poor’s 500 Illinois’ credit rating is the worst among the 50 states. We are the only state in the country with an A- credit rating – on par with nations such as Botswana, Latvia and Slovenia

And Illinoisans should be aware of the possibility that we could be headed lower.

The recent Illinois Supreme Court ruling and subsequent injunction on collecting retiree health-insurance premiums – which freed Illinois’ state retirees from paying 1 to 2 percent of their pension check toward health insurance coverage – puts further downward pressure on Illinois’ rating.

The ruling has made Illinois’ $56 billion in retiree health insurance debt an even bigger obstacle to getting the state’s financial house in order.

A poor credit rating signals that there is more risk that the borrower may not be able to fulfill its debt obligations to lenders. Not only does this make Illinois less attractive to large investors looking for stable investment opportunities, it also imposes higher borrowing costs on the state, a hidden fee for Illinois taxpayers.

At present, 15 states enjoy a AAA credit rating, including our neighboring states of Indiana and Missouri. This is the highest rating issued by S&P.

Over the past decade, the only other state to hold a A- rating has been California. They were upgraded to A in 2013, leaving Illinois as the only state with that dubious distinction.

At present, California is one step above Illinois. Kazakhstan and Mexico are one step below.

The question for Illinois’ political leadership is: Which way are we heading?