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Rauner again dismisses bond rating agencies

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Illinois

The state has been without a budget for almost two years. The credit ratings agency Moody’s warned Illinois there will be long term damage of Illinois doesn’t have a budget soon. Rauner says he is not worried about Moody’s warning.

“Rating agencies work for bond houses. They love tax hikes, they love pension deferrals, bonds not pensions,” Rauner said.

Actually, they don’t like pension payment deferrals.

This isn’t new, of course. The governor has said similar things about the ratings agencies since the impasse began. But this is what he said during the campaign…

llinois’ credit rating just got downgraded again, the 12th time since Pat Quinn became governor. Unacceptable.

* The Tribune blames Democrats in the General Assembly…

Journalists covering state government should take training courses in adolescent conflict resolution. That’s the caliber of discourse between elected officials.

Do you know who doesn’t care about the daily political score? Bond rating agencies that monitor Illinois’ dysfunction with increasing alarm. “Illinois is at a critical juncture and its leaders must choose between further credit deterioration and drift without compromise, or the potential for stabilization,” Ted Hampton, a Moody’s Investors Service executive, now warns. “With a budget consensus, Illinois could quickly secure its financial position.” […]

So forgive us for viewing the Democrats’ new agenda with skepticism. We’ll know they’re serious if they work with Rauner to find common ground on a budget and on proposals he will sign into law, not to simply pass piles of bills they know he’ll veto.

Two months of the General Assembly’s spring session remain. If lawmakers can’t deliver solutions, they invite voters to ask: Why do we keep electing legislators who perpetuate disaster?

The Senate did try to do that, but were foiled by the big guy.

posted by Rich Miller
Monday, Apr 3, 17 @ 9:51 am

Comments

Pat Quinn failed with numerous bond ratings drops.

Skyhook in Reverse.

Can someone finally hold Rauner accountable.

The Trubune Editorial Board ignores the obvious.

Comment by Oswego Willy Monday, Apr 3, 17 @ 9:55 am
Rauner statements are as worthless as Confederate currency. Once he starts governing, I will listen. All I’ve heard to date is blah blah blah aimed at his base.

Comment by illinoised Monday, Apr 3, 17 @ 10:02 am
Isn’t this the same guy who beat up Quinn over all the ratings downgrades?

Guess it doesn’t mean anything when it happens on his watch.

Comment by RNUG Monday, Apr 3, 17 @ 10:03 am
Why did we elect a governor that would rather burn the state down than accept that he is not going to get everything he wants?

Comment by Perrid Monday, Apr 3, 17 @ 10:06 am
“Guess it doesn’t mean anything when it happens on his watch.” Because…Madigan!

Comment by Skeptic Monday, Apr 3, 17 @ 10:12 am
Hey BigBrain might have something’right. Not only do the work for the bond houses, but they are also doing C* work. Remember the BshCheney Depression hinged on them rating junk housing/mortgage bonds AAA. BigBrain will remember because his GA bank collapsed because of subprime loans and sleazy deck. Remember he was never ever involved.
BTW don’t miss the $uper$tar retrospective.

Comment by Annonin' Monday, Apr 3, 17 @ 10:22 am
Crashin’ the credit ratin’s — it’s a feature, not a bug.

Comment by Linus Monday, Apr 3, 17 @ 10:34 am
@OW 9:55==The Trubune Editorial Board ignores the obvious.==

Rauner buys a lot of ads from the papers and TV stations. They have become Rauner spokesmen, and have lost all their credibility. They don’t want to lose the revenue by going against Rauner.

Comment by DuPage Monday, Apr 3, 17 @ 10:48 am
I would love to know how many Illinois bonds the governor holds personally or through GCTR and has purchased since the bond rating has gone down under his watch. It would be interesting to know the amount of bonds in the portfolios of Rauner’s major contributors as well.

Perhaps one of the Democrat candidates for governor could do some research. It might be a good campaign ad if it turns out he is fleecing taxpayers via Illinois bonds. Certainly a good Governor would care about what Illinois taxpayers are paying in interest on bonds.

Comment by A Jack Monday, Apr 3, 17 @ 10:52 am
== I would love to know how many Illinois bonds the governor holds personally or through GCTR and has purchased since the bond rating has gone down under his watch. ==

And how much he is planning to buy in the next few rounds, including some capital offering and the suggested $5B “backlog” offering?

Comment by RNUG Monday, Apr 3, 17 @ 11:01 am
We sure have heard a lot about possible conflict of interest and MJM personally profiting off of his property tax appeals business. A lot of smoke, but not sure if there has been any fire.

Why not use the same argument against the Guv and his fellow bond buying buddies? There should be plenty of smoke there.

Comment by Henry Francis Monday, Apr 3, 17 @ 11:09 am
So good to see the old Trib edit board back. That one editorial blaming Rauner for the death of the grand bargain was one too many for them. Back to throwin’ away the calculator and throwin’ away all logic and rationality.

Comment by Chicago Cynic Monday, Apr 3, 17 @ 11:11 am
If the gov was his employee in the private sector, he woulda been fired long ago:

-explosion in bill backlog
-no balanced budget offered or enacted
-bond ratings downgrades
-all while achieving exactly nothing on the TA

“You’re fired!”

Comment by Langhorne Monday, Apr 3, 17 @ 11:16 am
The Tribune is not worth reading.

Comment by Anonymous Monday, Apr 3, 17 @ 11:34 am
==If the gov was his employee in the private sector, he woulda been fired long ago:==

If Illinois was a company, it would’ve filed bankruptcy long before Rauner coulda been hired.

Comment by City Zen Monday, Apr 3, 17 @ 11:56 am
“The Senate did try to do that, but were foiled by the big guy.”

Yet another occasion when one wishes that the Tribune’s Editorial Board would take the time to read the quality work of the Tribune’s own reporters.

– MrJM

Comment by @misterjayem Monday, Apr 3, 17 @ 2:02 pm
Isn’t there a comment attributed to 1.4% that went something along the lines of “I don’t care about bond ratings, I don’t work for them.”?

Wonder when our once stellar rating will hit junk.

Comment by Huh? Monday, Apr 3, 17 @ 4:26 pm
Governor Rauner may not care what the bond rating houses have to say, but I’d bet Illinois creditors do.

Comment by South Illinoisan Monday, Apr 3, 17 @ 5:32 pm