Illinois' Credit Takes Yet Another Hit

Illinois' inability to reach a deal on pension reform has resulted in another credit downgrade. Fitch Ratings dropped the state's rating outlook from stable to negative.

The rating action affects approximately 26.2 billion dollars in outstanding general obligation bonds. Fitch says they issued the downgrade after lawmakers failed to pass a reform package during lame duck session.  The agency believes the burden of the unfunded pension liabilities and growing annual pension expenses is unsustainable.

House Minority Leader Tom Cross calls the state's latest credit downgrade "embarrassing." He says it may cost the state money that it doesn't have. He and lawmakers have failed to reach a deal on pension reform, though several proposals have circulated in Springfield.