S&P Global Ratings moved its outlook on Illinois' BBB-minus to negative from stable on "worsening economic conditions," an action that also impacted sales tax, convention center and sport facilities' bonds.
Lawmakers approved a 2021 fiscal plan with mechanisms for spending reductions throughout the year because of economic headwinds caused by the COVID-19 pandemic.
Incoming data continued to show massive hits from the efforts to stem the spread of COVID-19, with jobless claims doubling and the New York manufacturing sector hitting all-time lows in activity.
The rating agency expects a 'sudden and severe decline in the city's sales and income taxes' as a hit to the city's budget and economy from the coronavirus crisis.
Lawmakers missed a March 31 deadline to pass an on-time fiscal 2021 spending plan and officials said that the finalized budget might have $10 billion less in state funding to account for expected losses in tax revenues.
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