Overcast
78°FOvercastFull Forecast

S&P lowers Illinois credit rating, blames pensions

Published: Friday, Jan. 25, 2013 1:49 p.m. CDT • Updated: Friday, Jan. 25, 2013 1:53 p.m. CDT

CHICAGO – Standard & Poor's rating services has lowered Illinois' credit rating, blaming the state's pension problems.

The New York-based agency said Friday that the rating on the state's general obligation bonds was downgraded to A- from A. The agency also gave an A- rating to $500 million in general obligation bonds that the state plans to release in February. The agency says the outlook is negative.

Standard & Poor's credit analysts say the downgrade reflects what the agency sees as the state's "weakened pension-funded rations" and lack of action on reform measures to improve the state's worst-in-the-nation pension crisis. Illinois has a $96 billion pension deficit.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Daily Chronicle.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Watch Now

Player embeded on all DDC instances for analytics purposes.

State of the City - DeKalb Mayor John Rey

More videos »

Reader Poll

What should DeKalb city leaders' biggest priority in the coming year?
Developing a college-friendly town
Creating jobs
Repairing roads
Renovating City Hall
Long-term planning