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IL pensions downgraded because of legislative inaction

Fri, 11 Jan 2013 13:02:43 CST
By: AP

A major credit-rating agency says it's relabeling Illinois' financial outlook to "negative" from "stable" based on the state's failure to enact pension reform. Fitch Ratings adjusted its opinion of Illinois' credit-worthiness Friday. Fitch is one of three agencies that monitor state finances and grades ability to repay debt. Fitch says the outlook for the state's rating, currently ``A,'' could improve if Illinois can agree to resolve a $96 billion deficit in its pension programs. Gov. Pat Quinn's latest effort fizzled this week. The outlook gives an indication of how a state's grade might move in the coming months. ``Negative'' means Fitch could downgrade Illinois' credit. That would mean a higher interest rate to borrow money. Fitch's Illinois outlook matches that of the two other credit rating companies.

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