State treasurer reacts to Standard and Poor’s downgrading of Illinois’ credit rating

State Treasurer Dan Rutherford (R)

Online Staff Report

SPRINGFIELD, Ill. — “Standard and Poor’s has announced another downgrade of Illinois’ General Obligation bond debt,” Illinois Treasurer Dan Rutherford (R) said in a statement Jan. 25. “Illinois has now sunk to an A- rating with a negative outlook, the lowest of all 50 states.

S&P states, ‘The downgrade reflects what we view as the state’s weakened pension funded ratios and lack of action on reform measures.’ This rating action is now the eighth negative issuance against Illinois by the various ratings agencies to Illinois’ bonding entities since the beginning of 2012.’

It is estimated that the failure to address the state’s pension liability is costing the state at least $17 million per day, plus these downgrades continue to make borrowing additional funds even more expensive,” Rutherford continued. “The timeline of inaction by Gov. [Pat] Quinn and the legislature has our great state headed for a fiscal disaster. It is beyond irresponsible to let this continue.”

Posted Jan. 25, 2013

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