S&P says ILL-inois' bond rating likely to be junk soon

Lincoln statue, Dixon, Illinois

As then-US Attorney Patrick Fitzgerald said as he announced the arrest of Rod Blagojevich, this latest Illinois humiliation "would make Lincoln roll over in his grave."

From Crain's Chicago Business--registration may be required:

Odds are greater than even that Illinois debt officially will be rated junk—and soon—if lawmakers do not resolve an impasse with Gov. Bruce Rauner and enact a new budget by the beginning of the state's new fiscal year on July 1.

That was the word from S&P Global Ratings today as the New York financial firm turned up the pressure another notch in a political feud that shows no sign of breaking soon.

In a call with reporters, analysts at S&P, which on June 1 moved state debt to just one level above junk, said that without a budget, the state's rating could drop more than one notch.

"We think (a further downgrade) is above one in two likelihood around the time" the fiscal year 2018 begins on July 1, said Gabriel Petek, a managing director and sector leader for the firm. "This situation definitely is moving quickly if they don't have a budget."

Illinois' reform governor, Republican Bruce Rauner, is locked in a battle with old guard Democratic Party boss Michael Madigan, who has been House speaker for 32 of the last 34 years. Madigan is the midwife of Illinois' pension debacle.