CHICAGO — Illinois will competitively sell $155 of new-money Build Illinois sales-tax backed bonds tomorrow, the first in a series of deals worth more than $5 billion planned over the next few months as the state struggles with a budget deficit that drove yesterday’s rating downgrade from Moody’s Investors Service.

The size of the budget problems and political delays in addressing them, along with a further weakening in the state’s fiscal 2009 results, prompted the downgrade to A2 from A1 on $24 billion of state debt, including its general obligation and Build Illinois bonds. California is the only state rated lower at Baa1.

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.