Fitch Ratings

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The Moody's credit rating agency has downgraded $26.8 billion in Illinois's general obligation bonds, saying the move was due to the state's weakening financial position during the year.

In lowering the bond rating to Baa1 from A3 on Thursday, Moody's Investors Service said its expectation is that the ongoing stalemate on the budget due July 1 will lead to further deterioration of the state's finances.

Fitch Ratings on Monday downgraded its rating on the state's outstanding bonds for the same reason.

A major credit rating agency has downgraded Illinois' rating on outstanding bonds because of the state budget crisis.

Fitch Ratings on Monday lowered the rating on $26 billion in general obligation bonds from A- to BBB+. That's a few levels above what's considered "junk'' status.

Fitch cites lawmakers' failure to pass a budget for the July 1 fiscal year, above-average debt and "exceptionally high'' unfunded pension liabilities.

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.