Illinois Achieves 10th Rating Upgrade Since Governor Pritzker Took Office

Moody’s rating upgrade serves as continued recognition of Illinois’ significant financial progress.

Submitted by The State of Illinois Newsroom

Oct 27, 2025 9:12 AM

Listen to the story

CHICAGO—Today, Governor Pritzker celebrated the State’s 10th credit rating upgrade in just over four and a half years as Moody’s Investors Service upgraded Illinois’ rating to A2 for the State’s general obligation bonds. This recognition comes as Illinois has made significant financial progress under Governor Pritzker, including passing seven consecutive balanced budgets, eliminating the bill backlog, increasing the rainy-day fund to nearly $2.4 billion today, and years of responsible financial management and discipline. The rating upgrade reflects the State’s continued commitment to growing the economy and maintaining fiscal stability and comes even as the Trump Administration’s policies create national economic uncertainties and negative financial impacts for states like Illinois.

Get The Latest News!

Don't miss our top stories and need-to-know news everyday in your inbox.

“The latest Moody’s upgrade reflects how Illinois continues to increase its financial standing. Our tenth credit upgrade speaks volumes to the state’s commitment to consistent fiscal discipline – even as the Trump Administration creates widespread economic uncertainty,” said Governor JB Pritzker. “With each credit upgrade, Illinois saves taxpayers millions of dollars in interest payments and further demonstrates the benefits of long-term improvements to our fiscal position.”

The rating of a state’s bonds is a measure of their credit quality. A higher bond rating generally means the state can borrow at a lower interest rate, saving taxpayers millions of dollars. Before Governor Pritzker took office, the State of Illinois experienced 24 downgrades over 15 years. Between just 2015 and 2017, Illinois suffered eight credit rating downgrades and sat at the top of many analysts’ lists of the worst managed states in the nation under the previous administration. At its worst, Illinois’ bill backlog hit nearly $17 billion.

Across major credit rating agencies Moody’s Investors Service, S&P Global Ratings, and Fitch Ratings, the State has received ten upgrades since June of 2021. Prior to those upgrades, the State had not received an upgrade since June of 2000, over two decades. Agencies have cited the State’s actions in paying down bill backlogs, repaying debts, increased fiscal transparency, building financial reserves, and balancing the State budget as factors in the upgraded ratings.

Article continues after sponsor message

Learn about our advertising opportunities!

Illinois Earns 10th Credit Rating Upgrade on Comptroller Mendoza’s Watch

Illinois Comptroller Susan Mendoza Illinois Comptroller Susana A. Mendoza, the state’s chief fiscal and accountability officer, welcomed Thursday’s announcement by Moody’s Ratings agency of the state’s 10th credit rating upgrade in recent years.

“I promised when I ran for Comptroller that I would break the string of credit downgrades the state had received and get us our first credit upgrade in years,” Comptroller Mendoza said. “This makes 10 upgrades on my watch.”

In announcing Thursday’s upgrade from A3 to A2, Moody’s cites the state’s Rainy Day Fund, which has grown from $48,000 to $2.4 billion on Mendoza’s watch: “Illinois continues to add to its reserves and fund balance, growth in which is a crucial element in mitigating risks associated with the state’s high leverage, as well as shifts in federal policy.”

Mendoza has championed a bill to require more regular payments into the state’s Rainy Day Fund and Pension Stabilization Fund. Moody’s statement Thursday cited both those actions as potentially leading to further upgrades.

“These 10 upgrades recognize our work in eliminating the bill backlog, paying down debts, increasing transparency, building up our Rainy Day Fund and the General Assembly’s and governor’s balanced budgets – Thanks Moody's!” Comptroller Mendoza said.

Prefer RiverBender on Google