CHICAGO – Fitch Ratings moved Monday to punish Illinois’ inaction on pension reform during its legislative session by knocking its general obligation and appropriation ratings down one level and warning of the potential for further deterioration by assigning a negative outlook.

Fitch lowered the state’s GO rating on $27.5 billion of GO debt to A-minus from A and assigned a negative outlook. It lowered the rating on appropriation bonds to BBB-plus from A-minus. Illinois’ GO rating now matches California at the bottom among states although it carries a positive outlook.

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