Moody's Investors Service warned yesterday that even if Illinois' House of Representatives takes action to enact a new budget today, the state still risks a downgrade in its credit rating to junk, Reuters reported. The Democratic-controlled House today will attempt to overturn Republican Governor Bruce Rauner's vetoes of spending and tax increase measures aimed at ending the state's unprecedented two-year budget impasse. Moody's said it placed Illinois' Baa3 rating, which is one step above the junk level, on review for a possible downgrade. The $36 billion fiscal 2018 budget and $5 billion income tax increase passed by lawmakers over the extended Fourth of July holiday weekend, may fall short in addressing the state's financial woes, particularly its huge unfunded pension liability and $15 billion unpaid bill backlog, according to Moody's.
