Illinois avoids credit ‘junk’ heap — for now
Illinois has escaped the immediate pressure of its credit rating being downgraded to “junk” bond status — for now— Moody’s Investors said on Thursday.
Moody’s said the passage of a state budget for the first time in two years “alleviated liquidity pressure and moved the state closer to fiscal balance.”
Lawmakers overrode Gov. Bruce Rauner’s vetoes of a budget package earlier this month — marking the end to a historic impasse that decimated the state’s social service network and public universities. The threat of a “junk” downgrade was very real. And even after the passage, Moody’s last week placed Illinois’ near-junk bond rating under review for a possible downgrade, citing “credit challenges” that linger.
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