Moody's upgrades Illinois' credit rating

SPRINGFIELD – Illinois received its first credit rating upgrade in 23 years on Tuesday when Moody’s Investors Services raised the state’s rating one notch, citing “material improvement in the state’s finances.”

Although the upgrade still leaves Illinois bonds rated just two notches above so-called “junk” status, Gov. JB Pritzker said it marked a turning point for the state, and he credited the General Assembly and members of his own administration for bringing greater fiscal discipline to the state’s budget.

“Make no mistake, despite all the challenges of the last year, after eight credit downgrades our state suffered under my predecessor, I say with full certainty Illinois' fiscal condition is heading in the right direction for the first time in the 21st century,” Pritzker said during a Statehouse news conference.

In a statement, Moody’s said its decision was based in part on the recently passed budget, which increases pension contributions, repays last year’s emergency borrowing from the Federal Reserve and keeps the state’s bill backlog in check, with only “constrained use” of federal aid from the American Rescue Plan Act.

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