Moody’s Downgrades Illinois Credit

Moody’s Investors Services has downgraded the credit outlook for the state of Illinois from stable to negative.
Moody’s released the revised ratings outlook on Thursday. Illinois Treasurer Dan Rutherford  planned to comment on the revision later Friday. Moody’s cited Illinois’ “severe pension funding shortfall” in downgrading the state’s credit. Gov. Pat Quinn has set a Jan. 9 deadline to overhaul the state’s pension system, which is underfunded by an estimated $96 billion.  
The ratings agency also said Illinois has long-term weak management practices that are reflected in the state’s pension under-funding and bill payment delays. Thousands of vendors that provide state services are owed $9 billion in back-due payments. (AP)

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