Market debates whether Illinois can capitalize on rating momentum
By Yvette Shields July 06, 2021
After two decades of credit deterioration — with a brief reprieve about a decade ago that lifted the state’s ratings due to a recalibration of municipal credits — the pendulum shifted last week with a one-notch upgrade from Moody’s Investors Service.
The upgrade gives the state more breathing room between investment grade and junk. It had been on the verge of becoming the first sovereign state to lose its investment grade rating since mid-2017.
The upgrade could mark a turning of the tide but the state must stay on a more fiscally prudent track, especially as federal funds dry up. “I think COVID and the federal help has given the state reset button,” said John Mousseau, president and chief executive officer and director fixed income at Cumberland Advisors.
Others are more skeptical and see the upgrade only as a harbinger of near-term stability.
Read the full article at The Bond Buyer website (paywall): https://www.bondbuyer.com/news/market-debates-whether-illinois-can-capitalize-on-rating-momentum
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