• S&P lowers Illinois credit rating, blames pensions

    by  • January 25, 2013 • News

    (AP) — Standard & Poor’s rating services has lowered Illinois’ credit rating, blaming the state’s pension problems.

    The New York-based agency says the rating on the state’s general obligation bonds was downgraded to A-minus from A. The agency also gave an A-minus rating to $500 million in general obligation bonds that the state plans to release in February.

    The agency says the outlook is negative.

    Standard & Poor’s credit analysts say the downgrade reflects what the agency sees as the state’s “weakened pension-funded rations” and lack of action on reform measures to improve the state’s worst-in-the-nation pension crisis. Illinois has a $96 billion pension deficit.