Illinois achieves highest credit rating in 20 years, still lowest-rated state

CHICAGO, Ill. (WTVO) — Moody’s Investors Service on Thursday upgraded Illinois’ credit rating to A2, the state’s highest mark in more than two decades. But despite the bump, Illinois remains the lowest-rated state in the nation.

Moody’s Ratings Thursday move elevates the state to five steps above junk, although with a stable outlook.

The upgrade represents the 10th credit rating upgrade under Gov. JB Pritzker’s stewardship.

“The latest Moody’s upgrade reflects how Illinois continues to increase its financial standing. Our tenth credit upgrade speaks volumes to the state’s commitment to consistent fiscal discipline – even as the Trump Administration creates widespread economic uncertainty,” said Pritzker. “With each credit upgrade, Illinois saves taxpayers millions of dollars in interest payments and further demonstrates the benefits of long-term improvements to our fiscal position.”

The state has passed 7 consecutive balanced budgets, eliminated a bill backlog, and increased the rainy day fund to nearly $2.4 billion.

Moody’s Ratings are a measure of a state’s bond credit quality. A higher rating means the state can borrow at a lower interest rate and save taxpayers millions of dollars. The highest rating is AAA.

Illinois experienced 24 downgrades over 15 years, and was considered the worst-managed state in the nation by financial analysts.