* From Sunday on the blog…
S&P has revised its state of Illinois credit outlook from BBB-/Stable to BBB-/Negative.
That means Illinois is now just one tiny tick above non-investment grade status, or junk bond territory.
We’ve been here before. S&P assigned a BBB-/Negative rating to Illinois in June of 2017, the month before several Republicans broke ranks with Gov. Bruce Rauner and ended the two-year budget impasse.
S&P raised Illinois’ outlook to BBB-/Stable in July of 2019.
The problem here is that, by all accounts, this COVID-19 problem is nowhere near the end.
* Greg Hinz followed up last night…
Pritzker’s office said in a statement: “The state of Illinois is committed to working through the difficult challenges brought on by COVID-19. The state prioritizes its debt payments and will ensure we stay on track through this crisis. By working together, Illinois will get through this crisis and rebuild our economy with new resolve.”
* The Question: Do you think Illinois can avoid junk status? Explain.