As you might know already, Moody's earlier this month slapped Illinois with the worst credit rating of any state in the nation. But while Moody's report was damaging, S&P's rating was far more negative about the state's future.
Moody's cited Illinois' "weak management practices" as one reason for its ratings downgrade. The state's failure to implement any pension-funding reforms and to pay off its mountain of overdue bills were the two top reasons for the downgrade. But Moody's moved Illinois from a "negative" to a "stable" outlook for the future.
Fox Chicago News quoted a spokesperson for Governor Pat Quinn saying that the Moody's rating drop was an "outlier" because ratings agencies S&P and Fitch had decided not to lower the state's credit rating last week. On the surface, that's true. Underneath, not so much. Trouble is, S&P's rating contained much harsher language about Illinois' credit future, the agency also put Illinois on negative watch, and it issued a sternly worded warning that the state is in danger of another ratings downgrade this year.
In an exclusive interview last week, CME Group Executive Chair Terry Duffy said he's more than ready to leave Illinois if he doesn't get what he believes is a "fair" tax deal from the General Assembly.






