S&P issues new warning of possible Illinois credit downgrade

Crain's Chicago Business reports:

Standard & Poor's, the big ratings firm that earlier this year threatened a double downgrade of Illinois debt, on Wednesday issued a new warning of actions to come.

But the big New York rater didn't pull the trigger. That gives lawmakers and Gov. Pat Quinn some more time to reach an agreement on shoring up state pension funds that now have $83 billion in unfunded liabilities.

In a one-page statement, S&P noted that the legislature did send Mr. Quinn a fiscal 2013 budget that slashes spending and adds new revenue to the cash-short Medicaid program, about $2.7 billion total. The firm now will review "implementation risk associated with planned spending reductions and Medicaid," it said.

Barack Obama's Illinois: the land of reaction.