Illinois’ establishment of a program linking state vendors with private ­investors willing to purchase overdue vouchers underscores the severity of its chronic bill-payment deferrals, but shouldn’t impact its credit standing, according to a recent report from Moody’s Investors Service.

Moody’s — which rates Illinois A1 with a negative outlook — concluded in its report on the program that the transactions won’t change the state’s obligation on its payables and ultimately they won’t alleviate liquidity pressures.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.