(WSIL) -- Illinois has received another credit upgrade, this one from S&P.
Illinois has now received a total of six upgrades in less than a year. S&P Global Ratings announced on Friday its second upgrade of Illinoisâ€� bonds since July 2021.Ìý
Fitch Ratings upgraded Illinoisâ€� bonds by two notches this week, the first Fitch upgrade for Illinoisâ€� General Obligation bonds sinceÌýJune 2000. Illinois received an upgrade from ²Ñ´Ç´Ç»å²â’s Investor Service last month, the second such upgrade by ²Ñ´Ç´Ç»å²â’s in 10 months.
The rating of a state’s bonds is a measure of their credit quality. A higher bond rating generally means the state can borrow at a lower interest rate, saving taxpayers millions of dollars.Ìý
“The upgrade reflects what we view as improvement in the state's financial flexibility and monthly revenue reporting transparency, continued timely budget adoption and elimination of the bill backlog, as well as recent surplus revenues being used to promote what we view as longer-term financial stability, although credit pressures remain,â€Ì�S&P Global stated.
Friday's analysis credited stronger than forecast tax revenues and transparent reporting both from the Comptroller and the Governor's Office of Management and Budget aiding in addressing longstanding credit weaknesses.
S&P Global upgraded Illinois� rating on its General Obligation bonds to BBB+ (stable outlook) from BBB (positive outlook), and also upgraded Build Illinois sales tax bonds to A- (stable outlook) from BBB+ (positive outlook).
Fitch upgraded Illinois� rating on its General Obligation bonds to BBB+ (stable outlook) from BBB- (positive outlook), and also upgraded Build Illinois sales tax bonds to A (stable outlook) from BBB+ (positive outlook).
²Ñ´Ç´Ç»å²â’s upgraded Illinoisâ€� rating on its General Obligation bonds to Baa1 (stable outlook) from Baa2 (stable outlook), and also upgraded Build Illinois sales tax bonds to Baa1 from Baa2 while maintaining their stable outlook.Ìý
Between 2015 and 2017, the State of Illinois suffered eight credit rating downgrades and sat at the top of many analysts� lists of the worst managed states in the nation. At its worst, Illinois� bill backlog hit nearly $17 billion.
"These achievements bear repeating: balanced budgets four years in a row, paying the state's bills on time, early repayment of pandemic-related borrowing, clearing out debts left by previous administrations, making higher-than-required pension payments, setting aside $1 billion in savings for a rainy day. After more than 20 years without receiving a credit upgrade, the rating agencies are taking notice of our tremendous progress,â€Ì�said Governor Pritzker.Ìý"Along with our partners in the General Assembly and my fellow constitutional officers, we will continue to build on our success and lead this state in a fiscally responsible manner.â€�
