Illinois' inability to reach a deal on pension reform has resulted in another credit downgrade. Fitch Ratings dropped the state's rating outlook from stable to negative. The rating action affects approximately 26-point-two-billion dollars in outstanding general obligation bonds. Fitch says they issued the downgrade after lawmakers failed to pass a reform package during lame duck session. The agency believes the burden of the unfunded pension liabilities and growing annual pension expenses is unsustainable.
