John on December 10, 2009 at 1:07 pm
Illinois had its bond rating dropped by both S&P and Moody’s. From Reuters:
Illinois’ deteriorating financial condition has led to a second rating downgrade this week, with Standard & Poor’s Ratings Services slicing the state’s general obligation rating on Thursday to A-plus from AA-minus.
That followed Moody’s Investors Service cut of the state’s rating on Tuesday to A2 from A1.
Now, Illinois ranks just above California for the lowest rating among the 50 states from both rating agencies.
And the bad news might not end there as S&P and Moody’s slapped negative outlooks on Illinois’ rating.
Here’s the key line:
S&P said the negative outlook was retained because of the state’s “questionable” willingness to implement difficult and politically unpopular measures to restore a budget balance.
It’s a good thing that’s only happening there and not, you know, nationally.
Governor Pat Quinn has proposed a $500 million cash-flow borrowing on top of the $2.25 billion of outstanding short-term debt the state has to pay off in June.
His office blamed the downgrades on the recession and “the long-term mismanagement of the state’s finances.”
He’s referring to the mismanagement of people like state senator’s, right?
Category: Energy & Economy |