CHICAGO - With a $7 billion borrowing spree planned in the next few months, Illinois' credit took a double-notch blow yesterday from Fitch Ratings, which downgraded the state's rating to A from AA-minus after a review of the fiscal 2010 budget that relies heavily on one-time measures such as borrowing.
The action affects $19.4 billion of general obligation bonds. Fitch downgraded the state last December to AA-minus and then in April placed the GO credit on negative watch as lawmakers and Gov. Pat Quinn sought to resolve a budget impasse. Analysts said at the time any rating action would be driven primarily by how the state acted to address its dwindling revenues and estimated $12 billion deficit.