* Crain’s…
Moody’s Investors Service revised the state’s outlook from stable to positive yesterday, affirming the state’s A3 issuer rating. That positive outlook hinged on the possibility of continued growth in state revenue, Moody’s said in a written statement.
“Revision of the outlook to positive is driven by continued improvement in fund balance and budget reserves, which has been supported by stability in revenue and state decisions to shore up financial health,” according to Moody’s. “Affirmation of the ratings recognizes lingering downside risks to the state’s credit profile, including outsize liabilities stemming from unfunded pensions.” […]
Moody’s latest outlook on Illinois is a rosier report than the one it issued last year, when the credit reporting agency described Illinois’ financial position as weak and pointed to underlying challenges like the state’s constitutional protection of pension benefits.
…Adding… Comptroller Mendoza…
“Bond rating agencies notice when Illinois puts more money toward the Rainy Day Fund and the Pension Stabilization Fund, as we have been and must continue to keep doing,” Comptroller Susana A. Mendoza said Tuesday.
Moody’s Analytics changed its outlook on Illinois bonds from “stable” to “positive” Tuesday, citing Illinois’ “continued improvement in fund balance and budget reserves, which has been supported by stability in revenue and state decisions to shore up financial health,”
“I thank the General Assembly and Governor Pritzker for keeping their focus on responsible budgeting and I urge legislators to support my Rainy Day bill, HB2551, which would require the state going forward to make regular deposits into the Rainy Day and Pension Stabilization funds,” Mendoza said.
In raising its outlook on Illinois, Moody’s noted among factors that could lead to more credit upgrades to Illinois: “Further increases in pension contributions that accelerate reductions in outstanding liabilities relative to current projections.”
“We’ve had nine consecutive credit upgrades and we want to keep going,” Mendoza said. “Better ratings from the bond rating agencies mean lower costs for Illinois taxpayers on infrastructure projects like roads and bridges.”