S&P upgrades Illinois bond rating
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – The credit rating agency S&P Global Ratings upgraded Illinois’ bond rating on Thursday, citing the state’s improved financial condition. It’s the second upgrade from a major credit rating agency to move the state away from the brink of “junk” status.
“The upgrade reflects our view of improved liquidity, demonstrated operational controls during the pandemic, and an improved economic condition,” S&P credit analyst Geoff Buswick said in a news release.
The upgrade moved the rating on Illinois’ general obligation bonds to BBB from BBB-, the lowest investment-grade rating available. The state’s long-term credit outlook was rated as stable.
S&P’s decision came one week after Moody’s Investors Service raised its rating to Baa2 from Baa3.
In its announcement, S&P noted that state tax revenues held up stronger than expected during the recession brought on by the pandemic as well as the receipt of federal stimulus money “to help bridge the gap to a fully functioning economy.
It also cited as a reason for the upgrade Gov. JB Pritzker’s decision during the pandemic to cut more than $700 million in spending and freezes, though not all of those were related to the state’s general revenue fund.
And it noted that the political gridlock that led to a two-year budget stalemate during former Republican Gov. Bruce Rauner’s term had dissipated.
S&P also said it now views the COVID-19 pandemic as a “social factor” affecting public health and safety, but said the risk is abating “and is not viewed as a material credit factor.”
Like Moody’s, however, S&P said Illinois still faces a number of financial pressures, including its poorly-funded public pension systems and constraints under the state constitution that prevent the state from changing pension benefits.
But S&P also did not rule out the possibility of another credit upgrade in the future if the economy continues to recover and the state continues to manage its budget responsibly.
“The state’s economic base can already support a higher rating,” S&P said. “Any upside to the state’s creditworthiness, however, remains somewhat constrained by the poorly funded pension systems and other outsize liabilities. If Illinois were to make sustainable progress toward structural balance, including meeting its pension obligations, further reducing its bill backlog, and increasing reserves, we could raise the rating.”
Pritzker and other Democratic leaders responded quickly to the news, claiming credit for the state’s improved financial outlook.
“A well-known proverb states, a journey of a thousand miles begins with a single step,” Pritzker said in a statement. “Throughout my administration we’ve remained steadfast in our goal to return Illinois to fiscal stability. That has meant making responsible decisions step by step, day by day, working closely with our partners in state government.”
Senate President Don Harmon, D-Oak Park, called the news “further proof we are on the right track in balancing our fiscal realities with the real-world needs of working men and women,” while House Speaker Emanuel “Chris” Welch, D-Hillside, said it was the result of “positive changes you see when government leadership is truly working for the people they represent.”
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Brother Rice’s 11-game win streak ends with loss to Leo
Spread the loveBy Jeff Vorva Staff writer In seemingly a blink of an eye, Brother Rice picked up as many losses as it had all season. The Crusaders headed into last weekend’s action with a 21-2 record and was 10-0 in the Chicago Catholic League Blue. But Friday night, they suffered a 56-50 setback to…
Area Sports Roundup: Six area girls bowling teams headed to sectionals
Spread the loveBy Jeff Vorva Staff writer Six area girls bowling teams are headed to sectionals. Reavis and Stagg won IHSA regional titles last Saturday, and four other teams have advanced to this weekend’s action. Reavis won its own regional at Palos Lanes in Palos Hills with a 5,378 in six games, well ahead of…
Marist cheerleaders takes 2nd in state
Spread the loveBy Jeff Vorva Staff writer After Marist’s cheerleaders watched a video of their state finals performance on Feb. 5, there were some long faces and tears as the girls filed out of the video room and into the cooling-off room. After a long meeting, there were more long faces. “I’ve had better days,”…
Oak Lawn-Hometown Middle School packs meals for needy during holidays
Spread the loveBy Kelly White Wishing everyone to have the best holiday season, Oak Lawn-Hometown Middle School students packed meals for those in need before they went on Christmas break. The school, 5345 W. 99th St., Oak Lawn, hosted its annual Feed6 Meal Packaging event on December 4, where students gathered together, while socially distanced, with…
McCord shows off Stagg student artworks
Spread the loveBy Kelly White Stagg High School art students proudly had their work showcased at a local gallery. McCord Gallery & Cultural Center, 9602 W. Creek Road, Palos Park, featured the art of Stagg’s most creative until January 28. “Having my work as part of an art show in an art gallery like McCord is significant to…
No injuries when Metra train hits school bus in Orland Park
Spread the loveBy Bob Bong No children were injured Friday afternoon when their school bus stalled on railroad tracks in Orland Park and the bus was hit by a Metra commuter train. The Orland Fire Protection District responded to an emergency call Friday when a school bus from American School Bus Co. carrying students from…
Charge West Lawn man in 47th St. slaying
Spread the loveBy Tim Hadac An 18-year West Lawn man has been charged with murder in connection with the June 11 slaying of a 20-year-old woman in the 4700 block of South Rockwell. Dilan E. Ugalde, of the 3600 block of West 62nd Place, was apprehended by members of the Chicago Police Department and the Great Lakes Regional…
Charge 2 in Ford City carjacking
Spread the loveBy Tim Hadac A 19-year-old man and a 15-year-old boy have been charged with aggravated vehicular hijacking in connection with a crime that occurred in a Ford City parking lot at about 8:45 a.m. Thursday, Jan. 27. Travell Barnes, 19, of the 6800 block of South Hermitage, and the boy allegedly took a…
Police reports
Spread the loveMan shot to death in Chicago Lawn A 23-year-old man was shot in the back of the head and killed in a crime that occurred in the 6400 block of South St. Louis at about 1 a.m. Saturday, Jan. 30. Officers responding to a “person down” call discovered the victim lying on the…
Neighbors
Boys Volleyball | Sandburg seeks 26th regional title
Spread the loveBy Randy Whalen Correspondent Coming off the worst season in program history in 2023, Sandburg was not going to settle for anything less than better results this year. Past the midway point of this season, however, the Eagles had a record of 11-8. But they closed the regular season strong, winning 11 of…
Baseball | Red-hot Reavis looks to make noise in postseason
Spread the loveBy Xavier Sanchez Correspondent Reavis is determined to send their head coach Don Erickson into retirement on a high note and will head into the postseason red hot and as South Suburban Red champions. The Rams defeated Oak Lawn 3-0 for the second straight day on May 15 to clinch the conference title.…
Sports Bits | Rice boats at Carlyle Lake, Hawkeye DB and Do It Stevie’s Way
Spread the loveBy Jeff Vorva Correspondent Noteworthy sports briefs from May 12-19 • Brother Rice’s No. 1 boat of Joe Hall and Joe Judeh took 31st in the state bass fishing tournament, which wrapped up on May 18 at Carlyle Lake. The Crusaders had a two-day haul of 7 pounds, 12 ounces. The Crusaders’ No.…
Nothing NU at SeatGeek
Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…
College Softball | Close losses at nationals end Saint Xavier’s season
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…
Red Stars’ Naeher misses loss to Gotham
Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…
Summer calendar filling up quickly
Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…
Shepard’s Kyla Motley cruises to two medals at girls state track finals
Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…
Boys Tennis | Lyons’ Jack McLane and Mason Mazzone win sectional doubles title
Spread the loveBy Jeff Vorva Correspondent The area produced a handful of boys tennis state qualifiers, but only one entry is headed to state as a sectional champion. At the Class 2A Lyons Sectional, the Lions’ Jack McLane and Mason Mazzone were doubles champs. The state meet opens May 23 at various sites in the…
Water Polo | Lyons boys win third state title; girls finish 3rd
Spread the loveBy Jeff Vorva Correspondent The best matchup of the IHSA boys water polo state tournament was arguably in the quarterfinals. That battle between Lyons and New Trier could have been considered the real state championship match. But no matter what, the Lions are state champions. Heading into the postseason, Lyons had just three…