A second major credit rating agency has downgraded Illinois' rating, citing financial "mismanagement" by state leaders amid a yearlong budget impasse. S&P Global Ratings lowered the rating from BBB+ to BBB. The agency says the lack of a budget for the current fiscal year has "left Illinois with unmanaged spending" that could go on for another year.
Illinois had the worst credit rating of any state even before the current impasse between Republican Gov. Bruce Rauner and majority Democrats.
Moody's Investors Service lowered Illinois' rating to two levels above "junk" status on Wednesday. Moody's noted Illinois has a multibillion-dollar budget gap and its bill backlog is likely to exceed a previous record of $10 billion.
The lower rating means taxpayers pay more when Illinois borrows money.
