Illinois' credit rating drops--only California has a lower one

When "California is the place you ought to be" was warbled at the beginning of each episode of the "Beverly Hillbillies," the intentions had nothing to do with what the Chicago Sun-Times is reporting this evening.

A major financial ratings firm downgraded the state of Illinois’ creditworthiness today, delivering bad news to Gov. Quinn’s administration as it pushes for a new round of borrowing.

Moody’s Investors Services lowered the state’s ratings on general obligation bonds from A1 to A2 and lowered ratings on related bonds affecting about $24 billion in state debt because of “significant weakening” in state revenues and an inability by Quinn and state lawmakers to significantly narrow an $11.6 billion budget gap.

The move leaves only California with a worse credit rating among states, a Moody’s spokesman said.

“The downgrades are the result of high structural imbalances and little time to effect modifications to the budget in the current fiscal year, which ends June 30, 2010, as well as evidence of significant weakening in the state's 2009 results,” Moody’s analyst Edward Hampton said in a statement announcing the downgrade.

Illinois' budgets have been held together by "temporary" fixes since 2003. Coincidentally, the Democrats took control of the governor's office and the state Senate that year. Oh, Rod Blagojevich has been out of office for 11 months, so it's time the Dems stop blaming their fellow Dem for the problems they created. Illinois' current governor, Pat Quinn, was Blago's running mate--twice.

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