S&P Global Ratings dropped Illinois’ credit rating one notch to BBB on Friday and warned it could fall further absent a long-term solution that deals with the state’s chronic structural budget deficit and pension woes.
S&P said another downgrade could follow “should the state continue to demonstrate a lack of ability or willingness to adopt a long-term structural budget solution that also incorporates a credible approach to its long-term liabilities.”
The credit rating agency added that continued political gridlock could affect Illinois’ ability to pay off its debt.
Getting back to that S&P Global chart….Illinois has:
- Pension Funded Ratio: 40.2%
- Net Pension Liability per capita: $9,078
- Debt, pension, and OPEB per capita: $14,320
- GO rating/outlook: BBB+/negative
New Jersey has:
- Pension Funded Ratio: 37.8%
- Net Pension Liability per capita: $10,648
- Debt, pension, and OPEB per capita: $24,065
- GO rating/outlook: A/negative
Can the political gridlock in Illinois really be that much worse?*