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Moody's Downgrades Illinois Bonds

WUIS

Illinois has twice seen its credit rating take a hit this week.

First, Fitch. Now, Moody's. One after the other, the agencies have taken Illinois' credit rating -- already the lowest in the nation -- down another notch. Both cite the gridlock in Springfield as the cause.

The downgrade reflects "our expectation that an ongoing budget stalemate will lead to further deterioration" of the state's financial position, the Moody's analysts wrote, and the consequences of the impasse leave "the state more vulnerable to the next economic downturn."

Democratic House Speaker Michael Madigan says it's nothing to claim victory about, or to ignore --- and shows Illinois should focus on passing a budget.

"When rating agencies talk about Illinois and critique Illinois they talk about the problem with the budget deficit and they recommend that we work to eliminate the budget deficit. They do not talk about changes in workers' compensation, they do not talk about changes in collective bargaining, they do not talk about changes in the prevailing wage," Madigan said.

Those are the changes Gov. Bruce Rauner, a Republican, wants made before he'll talk with Democrats about balancing the budget. Rauner's office says he's not beholden to credit ratings agencies and that his agenda will help Illinois long-term.

Lower ratings make it more expensive for government to operate, ultimately raising costs on taxpayers.

Amanda Vinicky moved to Chicago Tonight on WTTW-TV PBS in 2017.
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