Moody’s Investors Service called an Illinois judge’s dismissal of litigation challenging the state’s retiree healthcare reforms a credit positive for the state.

“The court’s order rejected challenges to recently enacted retiree health insurance reforms, a credit positive development that, if upheld, will help the state of Illinois reduce annual expenses and payment backlogs associated with retiree health benefits,” Moody’s wrote in its weekly credit outlook published Monday. The state is rated A2 with a negative outlook by the agency.

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