There's a reason analysts say Illinois has the nation's lowest credit rating. It has the nation's largest unfunded pension liability.
Credit analysts like Moody's Ted Hampton are waiting to see what the Illinois Supreme Court has to say about Illinois' 2013 law reducing workers' pensions.
A ruling against the law it may not further downgrade Illinois' worst-in-the-nation credit rating. That's because Hampton says the rating already presumes it's not feasible.
But Hampton says there is way the justices' decision may nudge the rating higher.
"If the Supreme Court seemed to give some credence to the police powers argument the state has put forward, that would be a significant thing for us to consider, and all things being equal, a positive factor, I would say."
Ted Hampton already supposes the justices will reject the law.
"Our rating assumes that the constitutional protection is too high a hurdle for the state to get by."
Still, Hampton says the future of Illinois' credit worthiness doesn't necessarily all come down to the court's decision.
