(WSIL) --Â Illinois' bond rating has been raised again, Gov. JB Pritzker announced Thursday.Â
This marks the second time Moody's Investor Service has upgraded Illinois' ratings in less than a year. It's the third increase in two decades.Â
Moody's credited the state's "solid tax revenue growth over the past year." Moody's stated Illinois is "on track to close the fiscal 2022 with its strongest fund balance in over a decade."
The rating of a state’s bonds is a measure of their credit quality. A higher bond rating generally means the state can borrow at a lower interest rate, saving taxpayers millions of dollars.Â
“Illinois was in a deep hole in the years before I was sworn into the governorship, and together with the General Assembly, step by step, we are putting Illinois on firm fiscal footing,â€Â�said Governor JB Pritzker. “This credit upgrade means Illinois will likely pay a lower interest rate, saving taxpayers hundreds of millions of dollars in the coming years. I would like to especially thank Speaker Welch, President Harmon, Leader Greg Harris, Senator Elgie Sims, Comptroller Susana Mendoza and Treasurer Michael Frerichs for their partnership. There’s more work to be done, but step by step, rung by rung, we are steadily climbing the ladder out of a hole that was dug over decades. Illinoisâ€� future is bright.â€�
Moody’s upgraded Illinois� rating on its General Obligation bonds to Baa1 stable outlook from Baa2 stable outlook, and also upgraded Build Illinois sales tax bonds to Baa1 from Baa2 while maintaining their stable outlook. Moody’s affirmed the Baa3 rating and stable outlook on outstanding Metropolitan Pier and Exposition Authority bonds that are partially paid with state appropriations.
Between 2015 and 2017, the State of Illinois suffered eight credit rating downgrades.
