Moody's revises its Illinois outlook from "negative" to "stable"
* From Moody’s…
Moody’s Investors Service has revised the outlook of the state of Illinois to stable from negative, while affirming the Baa3 rating on the state’s general obligation bonds. […]
Affirmation of the state’s rating and the revision of its outlook to stable reflect the state’s financial performance through the pandemic, in combination with increased levels of federal support that will moderate near-term fiscal and economic pressure. State and local government funds expected under the latest federal aid package may help the state repay deficit financing loans, support its financially pressured local governments and spur employment, income and tax revenue growth. While credit risks raised by the pandemic during the past year are receding, the longer-term challenges associated with the state’s very large unfunded post-employment liabilities remain. The state’s Baa3 rating is supported by a large, diverse economy with above-average wealth, and it benefits from powers over revenue and spending. […]
RATING OUTLOOK
The stable outlook indicates the state’s capacity to manage near-term fiscal pressures while carrying a heavy long-term liability burden.
Read more: https://capitolfax.com/2021/03/26/moodys-revises-its-illinois-outlook-from-negative-to-stable/