CHICAGO – Standard & Poor’s shifted the outlook on its A-minus Illinois general obligation bond rating to “developing” from “negative” Tuesday following passage of a sweeping public pension restructuring, but warned the state is far from out of the woods fiscally.

Standard & Poor’s said a “developing” outlook indicates that the agency “could raise or lower the rating during the two-year outlook horizon” but said passage of the reforms represents a clear positive. The change is the first credit action on Illinois in recent memory that didn’t push its rating or outlook downward.

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