Moody's

The decision to downgrade DeKalb's bond rating from Aa2 to Aa3 is based in part on the city’s pension liabilities.

According to a news release, this liability is due in part to the city using the lower funding level allowable by the State of Illinois, as well as a change to the Government Accounting Standards Board liability reporting requirement.

Moody’s also cited DeKalb’s declining tax base from 2009 to 2015 as a contribution to the rating but noted a tax-base increase in 2016 of 1.6 percent.

Susan Stephens / WNIJ

Moody’s Investor Service is out with a warning that the just-passed stopgap spending plan is not enough for Illinois’ public universities.

On Thursday, lawmakers were extolling the measure’s support for higher education. 

Republican state Sen. Chapin Rose of Mahomet highlighted funding of Monetary Award Program – or MAP – grants, for low-income students.

“Pay out the remaining MAP grants from ’16," he said. "It will help our community colleges and also, very importantly, it will invest in adult education to put people back to work in this state.”

Flickr user Pictures of Money / "Money" (CC BY 2.0)

A second major credit rating agency has downgraded Illinois' rating, citing financial "mismanagement" by state leaders amid a yearlong budget impasse.

S&P Global Ratings lowered the rating Thursday from BBB+ to BBB. The agency says the lack of a budget for the current fiscal year has "left Illinois with unmanaged spending" that could go on for another year.

Illinois had the worst credit rating of any state even before the current impasse between Republican Gov. Bruce Rauner and majority Democrats.

Susan Stephens / WNIJ

Moody' Investors Service downgraded Northern Illinois University's ratings to Baa2 from Baa1 on its Auxiliary Facility System (about $199 million outstanding) and Certificates of Participation (about $12 million outstanding). The outlook is negative.

According to a news release, the downgrade reflects expected weakening of operating cash flow and liquidity due to lack of FY 2016 state appropriations resulting from the failure of the State of Illinois (Baa1 negative) to enact a budget eight months into the fiscal year.

Flickr user Pictures of Money / "Money" (CC BY 2.0)

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.

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