Two major credit houses aren't overly worried about a county judge striking down the Illinois pension law last week, but they're not happy with the state's financial condition.
Moody's Investors Service issued a "credit negative" rating after the court ruling last week. It's a warning while the agency decides on a credit downgrade.
Sangamon County Circuit Judge John Belz says the law violates the state Constitution by reducing pension benefits. It also reduces employee contributions.
Fitch Ratings says it hadn't factored savings from the pension fix into credit projections. But the ratings agency says it's more concerned about the prospect that a four-year, temporary income tax expires in January. That would blow a $2 billion hole in the state budget.