The upgrade "reflects the tremendous financial progress we have made since taking office," said a statement from Gov. JB Pritzker. Bloomberg News- The upgrade will help the state market its next bond sale
Illinois remains the lowest-rated state government
Processing Content
Illinois was upgraded Wednesday by Moody's Ratings.
The state's issuer, general obligation bond, and Build Illinois sales tax bond ratings were raised to A1 from A2, with all related ratings enjoying the same one-notch bump.
The rating lift should help the state's plans to sell $900 million of general obligation bonds in September.
"The upgrade is driven by realized and expected continued improvement in the state's financial metrics," the rating agency said. "Governance is a key driver of the upgrade, as eight consecutive on-time balanced budgets and consistently conservative fiscal management have led to solid reserves and increased our confidence in the state's ability to navigate future budget pressures while preserving financial flexibility."
Moody's rating outlook remains stable.
"Moody's latest upgrade returns Illinois to its highest rating in nearly 15 years and reflects the tremendous financial progress we have made since taking office," said a statement from Gov. JB Pritzker, a Democrat, who has been in office since 2019 and is running for a third term.
The upgrade comes ahead of a general obligation bond sale planned for late September, according to the governor's office. Proceeds from the sale will support infrastructure spending and implementation of the state's pension acceleration program.
Moody's also upgraded to A3 from Baa1 the rating on Metropolitan Pier & Exposition Authority bonds that are partially paid with state appropriations. The outlook is stable.
Moody's said the A1 issuer rating reflects "a stronger governance framework" and sustained improvement in financial metrics, as well as a large and highly diversified economy that benefits from above-average income and wealth levels that underpin strong revenue-generating capacity.
Illinois remains the lowest-rated state government, but still much improved from the BBB-minus level ratings the state carried
Pritzker in his statement said he and his partners in the state legislature have delivered eight consecutive balanced budgets, eliminated the state's backlog of unpaid bills, grown the rainy-day fund to nearly $2.5 billion, and enacted measures to reduce pension liabilities.
Fitch Ratings and S&P Global Ratings both assign Illinois A-minus ratings with stable outlooks.
