12/14/2012 1:54:00 PM Moody's revises the State's credit rating from stable to negative
CHICAGO (AP) — Illinois Treasurer Dan Rutherford says Moody’s Investor Services’ negative revision of the state’s credit outlook will have an impact on taxpayers.
Moody’s Investors Services on Thursday revised the credit outlook for the state of Illinois from stable to negative. Rutherford said today that if the state doesn’t act then ratings agencies will “continue to take us down.”
Moody’s cited Illinois’ “severe pension funding shortfall.” 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.