Fitch Upgrades State’s Financial Rating

By Benjamin Cox on June 24, 2021 at 5:40pm

Illinois financial rating appears to be heading in the right direction.

Fitch has changed its credit outlook on the state from negative to positive. Earlier this year, both Moody’s and S&P changed their outlooks from negative to stable.

None of the agencies have yet changed the actual bond rating, which remains near junk status.

Fitch says the state has taken steps to address some of its most critical challenges by paying down debt and shrinking its backlog of bills, reducing the expenses the state incurs for late payments.

Fitch also highlighted the most recently passed state budget and a $1 billion reduction in state spending and a lack of interfund loans and sweeps.

Governor J.B. Pritzker praised the Illinois General Assembly and members of the administration in a press release announcing the news yesterday calling it a testament to strong financial management and responsible actions, despite the ongoing COVID-19 crisis. He also says it’s the third straight year a balanced, responsible budget was passed during his time in office.