CHICAGO – Already at the lowest level among states in credit rating, the S&P also lowered Illinois another notch closer to junk bond status Thursday, Nasdaq reports:
S&P Global Ratings downgraded Illinois's ratings a notch, citing the state's weakened financial management and budget position, while rival Fitch Ratings placed the state's ratings under review for a potential downgrade.
S&P lowered the ratings on Illinois's general-obligation bonds to triple-B-plus from double-A-minus. The new rating is three levels above junk territory and carries a negative outlook.
S&P said that the state's continuing lack of a budget plan has left Illinois "with unmanaged spending under a de facto budget, potentially for a second year, and that is adding to the state's sizable liabilities."
Fitch, meanwhile, also placed the state's $550 million bond issue that is expected to sell June 16 on ratings watch negative and rated it at triple-B-plus, or three notches above junk territory. Fitch says it expects to make a decision on the rating with six months, based on the progress of the state's budget process.
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