Pension Chaos a ‘Negative’ for Illinois’ Credit Rating
Illinois is edging closer to having its credit rating lowered because officials have failed to address the state's massive pension problem.
Moody's Investors Service calls the failure a "credit negative." That could lead to a reduction in Illinois' credit rating, which is already the lowest of any state. That would make it more expensive to borrow money.
Standard & Poor's Ratings Services also says it is evaluating the state's rating.
Illinois retirement systems have a huge gap between the money available and what they'll eventually pay out in pensions. The roughly $85 billion shortfall is the largest in the country.
State officials can't agree on reduce that gap and the amount Illinois must pay toward pensions each year.