- S&P downgrades the credit rating on Illinois' general obligation debt to BBB- from BBB. It's the third downgrade from S&P in the past year, and puts the state's credit just one notch above junk.
- The paper also remains on credit watch, meaning another downgrade - this time to junk - could be imminent.
- Noting a third year of stalemated budget negotiations, S&P says "unrelenting political brinkmanship now poses a threat to the timely payment of the state's core priority payments."
- The agency also warns of a "negative credit spiral," where downgraded ratings trigger contingent demands on state liquidity.
- Another downgrade is likely, says S&P, should lawmakers fail to agree on a budget designed to reduce the state's structural deficit.
- ETFs: MUB, NVG, IIM, NEA, NUV, NAD, PML, NZF, LEO, PZA, PMF, PMX, VMO, BFK, EVN, BLE, NXP, KTF, DSM, EIM, VGM, AFB, PMM, VKI, BKN, MVF, TFI, MYI, IQI, MUA, MVT, OIA, MEN, XMPT, MYD
- Now read: Expanding Arbitrage In Pimco Municipal Bond CEFs
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