Fitch shifts Illinois state government's economic outlook from negative to positive

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Fitch Ratings maintained the state’s credit rating at one step above junk-bond status, but reversed its forecast outlook from negative to positive reflecting improved post-pandemic economic recovery and tax revenues and a new state budget that avoids delaying bills and accelerates paying debt.

The move from negative to positive “reflects Illinois’ preservation of fiscal resilience given the quick and sustained economic recovery since the start of the pandemic, coupled with the state’s unwinding” of one-time cash-flow moves such as bill payment delays and interfund borrowing, Fitch said.

Fitch was the last of the big three credit rating agencies to signify an improved economic outlook for state government, following revisions by Moody’s Investors Services and S&P Global Ratings in March that moved the state from a negative to stable outlook.

“Fitch’s improved outlook for Illinois is yet another sign of positive momentum for our state’s fiscal condition, a testament to strong financial management and responsible actions by the General Assembly and my administration, and a product of the state’s economic resilience,” Pritzker said. “The story of Illinois in 2021 is that in the face of a crisis, fiscal discipline and smart economic policy pays off.”

https://www.chicagotribune.com/politics/ct-illinois-credit-rating-improves-fitch-20210623-jtjnjo5px5fbtkvyi2nrmw5meq-story.html

Democratic state legislature, Democratic Governor, Democratic President.