Illinois is edging closer to having its credit rating lowered because officials have failed to address the state's massive pension problem. Moody's Investors Service today called the failure a ``credit negative." That could lead to a reduction in Illinois' credit rating, which is already the lowest of any state. That would make it more expensive to borrow money.
Standard & Poor's Ratings Services also says it is evaluating the state's rating. Illinois retirement systems have a huge gap between the money available and what they'll eventually pay out in pensions. The roughly $85 billion shortfall is the largest in the country. State officials can't agree on reduce that gap and the amount Illinois must pay toward pensions each year.
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