Illinois Treasurer Dan Rutherford Reacting to Standard & Poor’s Downgrading of United States’ Credit Rating
Office of Illinois Treasurer Dan Rutherford|Sunday, August 7, 2011
Late yesterday, Standard & Poor’s lowered its AAA credit rating for the United States to a second-best AA+ rating. The credit-rating agency also added a negative outlook warning that the rating could be reduced again in the next two years.
Illinois Treasurer Dan Rutherford is releasing the following statement regarding S&P’s lowering of America’s outlook to repay its long-term debts:
“This action by the S&P gives me reason for concern and caution. Illinois faces its own severe fiscal challenges and my first priority will continue to be protecting the state treasury.”
“More than two months ago I released my position paper titled ‘No More Debt’ warning taxpayers of the financial position we face today. When the state’s past borrowing is combined with unpaid bills and unfunded pension and retiree healthcare benefits, every Illinois household shoulders more than $40,000 of debt. Habitual borrowing has lowered Illinois’ own credit rating to a level where borrowing additional funds has become dramatically more expensive. The halo effect caused by the reduced federal credit rating has the potential to sink Illinois’ rating even lower.”
“I will continue to sound the alarm on Illinois’ overwhelming state debt. Taxpayers deserve nothing less.”
