moody\s downgrades illinois one notch
Last Updated : GMT 04:32:38
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Moody\'s downgrades Illinois one notch

Arab Today, arab today

Arab Today, arab today Moody\'s downgrades Illinois one notch

New York - UPI

Moody\'s Investors Service said it reduced the credit rating for Illinois from A1 to A2, citing troubles with its pension plan. Moody\'s noted Illinois, although it raised state income tax rates and business tax rates last year by 67 percent and 30 percent, respectively, took no steps to correct problems with its pension plan, the Financial Times reported Saturday. A rating of A2 keeps Illinois in the upper medium investment range but will still make it more costly for the state to borrow. Its pension plan has a budget deficit that is officially listed as $86 billion. However, some estimates put the pension liability at $200 billion for both state and local government.

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