Illinois' Credit Rating On "Negative Watch"
By: Alex de Leon
Updated: January 11, 2013
Illinois' credit rating is on notice after lawmakers failed to come up with a solution to the state's pension crisis during the lame duck session.
Fitch Ratings, one of the nation's top credit rating firms, placed the state on a "negative watch" list. Illinois' credit rating is already among the lowest in the country. Another downgrade would make it even worse more expensive for it to borrow money.
Upon hearing the news, State Treasurer Dan Rutherford released this statement: "[We] cannot afford to take another hit. It is beyond irresponsible to let this continue. The state needs to reign in the pension escalation and not use long-term borrowing as a solution to this problem."
The pension system is currently $97 billion in debt.
Fitch Ratings, one of the nation's top credit rating firms, placed the state on a "negative watch" list. Illinois' credit rating is already among the lowest in the country. Another downgrade would make it even worse more expensive for it to borrow money.
Upon hearing the news, State Treasurer Dan Rutherford released this statement: "[We] cannot afford to take another hit. It is beyond irresponsible to let this continue. The state needs to reign in the pension escalation and not use long-term borrowing as a solution to this problem."
The pension system is currently $97 billion in debt.
