•March 8, 2023•
By Peter Hancock
Capitol News Illinois

S&P Global Ratings announced Thursday that it had raised Illinois’ long-term credit rating to A-, up from BBB+, marking the seventh upgrade the state has received from a major rating agency in less than two years.
The rating applies to roughly $27.7 billion in outstanding general obligation, or GO, bonds.
“The upgrade on the GO debt reflects our view that Illinois’ commitment and execution to strengthen its budgetary flexibility and stability, supported by accelerating repayment of its liabilities, rebuilding its budget stabilization fund to decade highs; and a slowing of statutory pension funding growth, will likely continue during the outlook period,” S&P Global Ratings credit analyst Geoff Buswick said in a news release.
Bonds are a tool that governments and businesses use to borrow money, typically for long-term capital projects such as building construction or other kinds of infrastructure. GO bonds are backed by the government’s general taxing authority but other bonds may be backed by more specific revenue sources, such as sales or motor fuel taxes. Higher bond ratings generally mean the borrower – in this case the state – pays lower interest rates.     Login or Subscribe to read the rest of this story.