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Sen. Mark Kirk Releases Video Statement Regarding Illinois Downgrade of Illinois Debt Rating by S&P

Tue September 18 2012 11:08 am  http://www.arlingtoncardinal.com/?p=55658
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Videotape issued today from Senator Mark Kirk regarding downgrading of the State of Illinois credit rating.

On August 17, 2012 the Illinois General Assembly ended its special session, having failed to pass comprehensive reforms to the state’s pension system, which S&P has cited as one reason for its downgrade of the state’s general obligation debt from A+ to A with a negative outlook. Ratings downgrades can increase interest costs on bonds, resulting in higher expenses for state infrastructure projects including schools, highways and other improvements.

Illinois may have to pay an additional $1.5 million annually for each $100 million it borrows.

— Associated Press, August 29, 2012

Standard & Poor’s Rating Services lowered the credit rating and assigned a negative outlook for the State of Illinois on August 29, 2012, because of weak pension funding levels and lack of government action on reforms.



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