By Howard Packowitz
SPRINGFIELD – Illinois has avoided junk bond status, at least for now, from S&P Global Ratings. S&P has removed Illinois government from its negative CreditWatch after lawmakers passed a budget last week.
S&P said the odds of the state government’s general obligation bond rating falling below investment grade in the next year has substantially diminished.
In a news release, House Speaker Michael Madigan said S&P’s action is a strong signal that the bipartisan budget agreement is an “important step in the right direction.”
Madigan wrote to the rating agencies, pleading with them to give lawmakers more time to pass a budget. They did just that by overriding Gov. Rauner’s veto of a budget and income tax increase.
In a prepared statement, Madigan said, “at the end of June, I wrote to the rating agencies and asked that they temporarily withhold judgment and give legislators more time to enact a budget, and I’m grateful for the legislators on both sides of the aisle who used this time to work together and make the difficult decisions needed to start getting Illinois back on track.”
Madigan went on to say, “there is more work to be done, and it’s clear from S&P’s statement that rating agencies, like all Illinois residents, are hoping Gov. Rauner will work in good faith with legislators to address these challenges rather than rejecting compromise by turning further to the extreme right.”
Howard Packowitz can be reached at [email protected]
