April 14, 2006
(AP) SPRINGFIELD, Ill. A New York bond-rating house has given Illinois a "negative outlook" rating based on concerns that the state won't be able to meet its growing pension obligations.Fitch Ratings gave negative outlook rankings to only two other states -- Michigan and the hurricane-ravaged Louisiana.The negative outlook ranking means that Fitch is considering lowering its rating of the state by one notch.A Fitch analyst warns that the state's double-A bond rating is in danger of being downgraded in the next year or two, meaning state
borrowing costs would increase by millions of dollars.Illinois has a $39 billion funding shortfall in pension funds -- and costs are growing every year.
So, we're right behind New Orleans and Detroit, huh? That's comforting. We hope all of the public employees vested in these plans have a little something set aside in private plans.
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