Moody's Investors Services downgraded the credit outlook for the state of Illinois from stable to negative. The service cited the "severe pension funding shortfall."
Illinois Treasurer Dan Rutherford said Illinois has the worst credit rating of any state in the US.
“If this doesn't get fixed, then I would hope that those out there that look for services of their Illinois government, to understand that there will be absolutely no ability to increase or even perhaps sustain their funding level," Rutherford said.
Governor Pat Quinn has set a January 9 deadline to overhaul the state's pension system, which is underfunded by an estimated $96 billion.
The ratings agency also said Illinois has long-term weak management practices that are reflected in the state's pension underfunding and bill payment delays.
Thousands of vendors that provide state services are owed $9 billion in back due payments.
Thanks to Illinois Public Radio