CHICAGO — Illinois’ credit took a second hit this week as Standard & Poor’s yesterday dropped the state’s general obligation rating out of the double-A category, downgrading it to A-plus from AA-minus due to a deteriorating balance sheet and lack of progress in addressing budget problems.
The rating agency also warned of further action down the road by assigning a negative outlook. Illinois is now alone among states rated by Standard & Poor’s at the A-plus level. Only California is rated lower by one notch at A, also with a negative outlook. Moody’s Investors Service downgraded the state to A2 from A1 on Tuesday, and assigned a negative outlook. Fitch Ratings rates the credit A.