Illinois receives first Moody’s bond rating improvement in more than 20 years, says Pritzker – NBC Chicago
For the first time in more than two decades, the state of Illinois has received a bond rating upgrade from Moody’s Investor Service, with Governor JB Pritzker hailing the move as an endorsement of “strong and responsible fiscal management.” state in recent years.
In a press release, Pritzker’s office said the upgrade was Moody’s first since June 1998, with the service citing “material improvements” in the state’s handling of its finances, coupled with “use limited federal aid ”while increasing retirement payments. and control the backlog of government bills.
“I promised to restore fiscal stability to Illinois, and Moody’s rating upgrade shows Illinois finances are on the right track for the first time in two decades,” Pritzker said in a statement. “Improving odds pays huge dividends to taxpayers, and the people of Illinois are to be commended for their incredible resilience and determination. “
Moody’s upgraded Illinois’ general bond rating from Baa3 with a stable outlook to Baa2 with a stable outlook, according to the press release.
Moody’s previously downgraded Illinois’ general bond rating three times, downgrading the rating to Baa3 recently due to a budget stalemate under the administration of former Governor Bruce Rauner.
Higher bond ratings mean Illinois can borrow money at lower interest rates, which could save taxpayers millions of dollars, the state says.
Pritzker underscored his administration’s commitment to balanced budgets, with the 2022 budget being the third consecutive balanced plan. The budget has funds to repay emergency Federal Reserve loans in advance, saving millions in interest and repaying funds the state has lent itself to improve cash flow .