Illinois Downgraded... Again
Illinois Becomes Moodys Lowest-Rated U.S. State With Debt Downgrade to A2
Unsurprisingly, a rating agency says has downgraded Illinois’ debt citing runaway pension costs:
The downgrade to the sixth-highest rating came after a legislative session that took no steps to implement lasting solutions to its severe pension under-funding or to its chronic bill payment delays, Moodys said in a report. Illinois, it said, has weak management practices.
Moodys revised its outlook on the debt to stable from negative, citing the states sovereign power over revenue and spending, and laws that establish the priority of payment for general-obligation bonds. The downgrade affects $32 billion of debt, according to the statement. Click Here for entire article: http://www.bloomberg.com/news/2012-01-06/illinois-rating-lowered-to-a2-by-moody-s-with-32-billion-of-debt-affected.html
It seems that Moody’s and everyone else other than Gov. Quinn, the legislature and their government union benefactors, recognize the dire need to reform Illinois’ pension system, now.
Read more: http://www.americansforprosperity.org/010612-illinois-downgraded-again#ixzz1iivd6Pp0