Standard & Poor's has revised its outlook on Illinois' debt situation. The view has been changed from from negative to developing.
The state's rating still stands at A-. But the announcement could lead to a raise in the rating in the near future.
In announcing the decision, the firm cited the pension overhaul approved by Illinois lawmakers this month.
Meanwhile, Governor Pat Quinn issued a statement on Tuesday's announcement:
This is the first positive movement for Illinois bonds in years and is the direct result of the bipartisan, comprehensive pension reform legislation that Governor Quinn signed into law last week. On Friday, Moody’s called the new pension reform law a “credit positive” and said it "may be the largest reform package implemented by any U.S. state."
“I am pleased the ratings agencies are recognizing that Illinois is moving in the right direction,” Governor Quinn said. “As I’ve always made clear, one of the many reasons to resolve Illinois’ pension crisis was the negative impact it had on our bond rating, which cost taxpayers more money to finance critical repairs and improvements to roads, bridges and schools.
“This improved outlook will be the first of many positive developments towards a revitalized and stronger Illinois,” the Governor said.