Saturday, March 27, 2010

Illinois' Bond Rating Remains Steady as State Prepares to Borrow $1 Billion in April

SPRINGFIELD – March 27, 2010. The Governor’s Office
of Management and Budget is pleased to announce that
both Moody’s and Standard & Poors have reaffirmed the
state’s long term bond rating. Moody’s remains at A
2 and Standard & Poors remains at A +.

“This rating is a positive indication that we can
move in the right direction to restoring fiscal
health to the state,” said David Vaught, Director of
the Governor’s Office of Management and Budget.

Director Vaught added that the Illinois General
Assembly’s recent passage of a major and
unprecedented public pension reform bill is proof
that lawmakers are willing to work with Governor
Quinn at finding solutions to Illinois’ fiscal

“Governor Pat Quinn’s leadership on pension reform,
which will save taxpayers more than a hundred billion
dollars over the next several decades, along with the
General Assembly’s decisive action to pass public
pension legislation, is a key factor in our efforts
to maintain this rating.” Director Vaught said.

Moody’s also reaffirmed their “negative outlook” on
Illinois’ General Obligation bonds while Standard and
Poors moved Illinois’ General Obligation bond ratings
from “negative outlook” to “credit watch.” A credit
watch indicates a downgrade is possible within six
months. Both ratings agencies contend they will be
looking for action by the General Assembly to address
the state’s fiscal crisis before the May session

“This outlook underscores the urgency for solutions
and emphasizes the need for continued action to
achieve fiscal balance by cutting costs, receiving
assistance from the federal government, managing our
debt, and securing revenue increases,” said Director

Over the next few weeks the state will be issuing
over a $1 billion worth of bonds as part of its Build
America Bonds series. These funds will be used for
several capital projects across the state as part of
Illinois Jobs Now!, a job creating and capital
improvement program that will revive the state’s
ailing economy by creating and retaining 439,000 jobs
over six years.

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