S&P to Illinois: prepare for next downgrade

By John Klingner
Standard & Poor’s Rating Services revised Illinois’ credit outlook to “negative” from “developing” on July 23. Illinois’ current S&P rating is A-, the lowest of any state in the country. With this revision, S&P and the other major rating agency in the country, Moody’s Investors Service, are once again on the same page. Both companies...

TAGS: downgrade

Illinois has lowest credit rating of all 50 states

By John Klingner
Chicago’s recent triple-notch downgrade by Fitch Ratings is a stark reminder that Illinois’ inability to solve its pension crisis has consequences. Illinois has the lowest credit rating of all 50 states. In contrast, three of its neighbors have maintained their AAA rating from Standard & Poor’s Ratings Services. Illinois has suffered 13 downgrades from the...

TAGS: Chicago, credit rating, downgrade, pensions

Fitch Ratings: Chicago approaching “inflection point”

Triple-notch credit downgrades for government entities are supposed to be rare. They normally happen only in response to major financial events, such as a sudden fiscal emergency. But Chicago just received its second triple-notch downgrade in just six months. And that spells trouble for Chicago taxpayers. Citing skyrocketing pension costs and a lack of meaningful...

TAGS: Chicago, Chicago Park District, Detroit, downgrade, pensions

Moody’s credit downgrades: Illinois, Chicago area, take beating

The recent string of credit downgrades by Moody’s Investors Service should leave little doubt what the rating agency thinks of Illinois’ worsening fiscal crisis. For the past few years the state’s five state-run pension funds have garnered most of the negative attention in Illinois. Moody’s has already designated Illinois’ debt as the riskiest of any...

TAGS: Chicago, downgrade

Cook County’s debt downgraded: pension liabilities double under Moody’s new methodology

By Ted Dabrowski
Chicago’s fiscal crisis just got worse. Last month, the city received a rare triple-notch downgrade from Moody’s Investors Service, to A3 from Aa3.  Now, Chicago’s parent government, Cook County, has received a downgrade of its own. Moody’s Investors Service downgraded Cook County’s general obligation bond rating to A1 from Aa3 due to the county’s “growing...

TAGS: Chicago, Cook County, downgrade

Illinois credit downgrade prompts delay of bond sale

This morning Illinois was forced to delay a $500 million bond sale – essentially, borrowing $500 million to finance state government operations. The delay was due to a drop in lender confidence in Illinois’ credit worthiness.

TAGS: downgrade