A press release from State Comptroller Judy Baar Topinka:
TOPINKA TO BOND HOLDERS:
ILLINOIS IN NO DANGER OF MISSING PAYMENTS
Comptroller responds to Moody’s announcement
SPRINGFIELD– Illinois Comptroller Judy Baar Topinka on Friday released the following statement in response to Moody’s lowering of the state’s bond rating:
“Despite today’s disappointing announcement by Moody’s, I want to make clear that there is no fear of the state missing a bond payment. In fact, as the state’s Chief Fiscal Officer I can reassure the bond community that the first payment we make each month is to our bond holders.
“Still, this is yet another cautionary note that cannot be ignored.
“While it would be premature to say how much, if at all, this will increase the state’s borrowing costs, Illinois leaders have a responsibility to hear the message being sent.
“Moody’s made clear that it would view further borrowing to pay current obligations as a negative act that could cause another downgrade.
“So once again, I must stress my opposition to proposed borrowing to pay down our bill backlog.
“The only way out of this mess is to keep cutting spending, provide for a better business climate and, for once, let growth outpace spending.”