Illinois Gets Third Upgrade on Rebounding Revenue, Reserves (1)

Illinois had its credit rating upgraded for a third time in less than a year as rebounding revenue helped it pay down debts and federal aid eased some of the pain from the pandemic for the still lowest-rated U.S. state.

Moody’s Investors Service on Thursday raised the state to Baa1 from Baa2 with a stable outlook, leaving it three levels above junk status. It last lifted the state in June and S&P Global Ratings followed in July by bumping Illinois up to BBB from BBB-. Both upgrades were the first for the state in two decades.

“The upgrade to Baa1 ...