A second major rating agency is downgrading Illinois' credit worthiness. Moody's Investors Service lowered the state's $27 billion in outstanding bond debt to A3 from A2. The new rating's three levels above junk status.
Illinois already has the worst credit rating among the states. Earlier this week, Fitch Ratings downgraded Illinois' credit.
Both firms blame lawmakers' lack of action on a $97 billion shortfall in its public-employee pension systems. The Legislature adjourned its spring session without adopting a plan to make up the difference over 30 years.
Moody's says its rating ``assumes the government will not take action to reduce the state's pension liabilities any time soon.''
A credit-rating downgrade means it costs the state millions more to borrow money when it sells future bonds to finance long-term construction projects.
In response to the downgrades, Governor Pat Quinn has called a special session for lawmakers later
this month to focus on finding a solution to the nearly $100 billion pension crisis.
The special session is June 19th.