A missed monthly debt service by the Metropolitan Pier and Exposition Authority is a credit negative for the State of Illinois, and is a sign of the ongoing budget problems facing the Land of Lincoln.
That’s the message from Moody’s Investors Service which says Illinois quote “political paralysis and ongoing failure to enact a budget” for the current fiscal year meant the failed authorization to pay the Authority’s bonds.
The bonds were downgraded last week by Standard and Poor’s and Fitch ratings services. The state continues to make other general obligation bond payments but has not appropriated money for the Metropolitan Pier and Exposition Authority.
Moody’s says if the issue is not addressed by December, there would be a default.