CHICAGO — Illinois' battered credit took another blow Wednesday as Standard & Poor's lowered the state's general obligation rating one notch to A as the state struggles with legislative gridlock on pension reform and an ongoing structural budget deficit.

Standard & Poor's warned of possible further action - absent some movement on pension reform or budgetary changes as portions of the state's 2011 income tax hike expires in 2015 - by leaving a negative outlook on the state's rating.

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