Illinois Receives 12th Credit Rating Upgrade Under Pritzker
- Illinois has secured its second credit rating upgrade within a single week, reaching an A rating with a stable outlook from S&P Global Ratings, according to state officials...
- S&P Global Ratings raised the state’s general obligation bond rating to an A with a stable outlook, following a decision days earlier by Moody’s to rank Illinois at...
- Despite the back-to-back credit upgrades, Republican lawmakers maintain that the improvements remain modest relative to the state's underlying debt obligations.
Illinois has secured its second credit rating upgrade within a single week, reaching an A rating with a stable outlook from S&P Global Ratings, according to state officials and ratings announcements. The upgrade reflects a multi-year track record of disciplined fiscal management and increased governance credibility, though political opponents argue the state still lags behind the rest of the country on long-term financial obligations and population retention.
S&P Global Ratings Raises General Obligation Bond Rating
S&P Global Ratings raised the state’s general obligation bond rating to an A with a stable outlook, following a decision days earlier by Moody’s to rank Illinois at A1, marking its highest rating in roughly 15 years, according to WAND-TV. Ratings agencies pointed to structural budget improvements, including eight consecutive balanced budgets. According to Sen. Elgie Sims, a Democrat from Chicago, the state has spent the last seven years building a solid foundation that yielded 10 credit rating upgrades, a nearly $2.5 billion rainy day fund, and a gross domestic product exceeding $1 trillion. Officials also noted that Illinois successfully protected more than $8 billion in federal funding through court actions, shielding critical programs and services from federal funding reductions.
Political Debate Persists Over Pensions and Spending
Despite the back-to-back credit upgrades, Republican lawmakers maintain that the improvements remain modest relative to the state’s underlying debt obligations. According to Sen. Steve McClure, a Republican from Springfield, Illinois cannot sustain new program spending until it resolves its liabilities, including pensions.
Until we pay our obligations, including our pensions, we cannot be adding new programs and adding all kinds of new spending when we can’t afford it,
McClure said, as reported by WAND-TV.
McClure also pointed to population trends as a primary indicator of economic health, noting that Illinois struggles to retain residents compared to other states with more competitive financial climates. This debate over long-term fiscal trajectory contrasts sharply with the pre-Pritzker era, which saw 24 credit rating downgrades over a 15-year span, including eight downgrades during the prolonged state budget impasse from 2015 to 2017.
