Prairie State Wire

Illinois’ general obligation (GO) debt outstanding was given a ‘BBB-’ long-term rating by S&P Global Ratings, revising the outlook to stable from negative, attributable to $1.259 billion GO bonds series A-C of March 2021.

The state received a ‘BB+’ rating on its appropriation-backed debt, and a ‘BB-’ rating on its moral obligation debt.

“The revised outlook reflects the waning of fiscal and economic uncertainty stemming from the COVID-19 pandemic and subsequent economic downturn,” S&P Global Ratings credit analyst Geoff Buswick said.

S&P also stated that it revised the “outlook to stable from negative and affirmed our long-term ratings on various revenue bonds, including Build Illinois and the Metropolitan Pier & Exposition Authority bonds, rated under our ‘Priority-Lien Tax Revenue Debt’ criteria (published Oct. 22, 2018), which factors in both the strength and stability of the pledged revenues, as well as the general creditworthiness of the linked obligor, in this case the State of Illinois (GO rating). The priority-lien rating on these bonds is limited by the state’s general creditworthiness,” the Capitol Fax reported.

The credit weaknesses causing the ‘BBB-’ rating, were due to the “unknown pace of recovery out of the pandemic-induced downturn,” and an “empty budget stabilization fund that would further limit budgetary flexibility,” among other reasons.

Ratings were published March 9.