SPRINGFIELD, Ill. (AP) — Illinois has been given the lowest credit rating of any state in America by Moody’s Investors Service.
Moody’s lowered Illinois’ rating Friday by another notch, to A2. No other state has such a low rating from Moody’s. Only one other state, California, even gets the next-highest rating.
A lower rating generally means the state has to pay more interest when it sells bonds. That increases costs to taxpayers.
Moody’s says it lowered the credit rating because Illinois officials haven’t taken steps to end chronic delays in paying bills or to strengthen government pension systems that are short of money.
The agency says Illinois suffers from “weak management practices.”
Gov. Quinn’s budget office issued a statement saying two other rating agencies think the state is taking proper measures to fix its finances. The statement also said additional pension reforms must be enacted.
(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)