Giannoulias Preens, Bond Ratings Drop

From the Illinois GOP: 

Illinois bond ratings tumble

State Treasurer says little on Illinois mismanagement

Focuses on fundraising instead

Illinois taxpayers to pay more for huge debt managed by Giannoulias

CHICAGO - While the Illinois bond rating tumbles, Treasurer Alexi Giannoulias has been spending his time raising money for a U.S. Senate race.

"On the same day the State of Illinois appeared on a credit watch list, Alexi Giannoulias was busy trumpeting his fundraising numbers for a political campaign," said Illinois Republican Party spokesman Lance Trover. "Blagojevich Democrats have created a fiscal crisis and instead of serving as financial watchdog for the people of Illinois, Giannoulias is focused on his next political move."

Under State Treasurer Alexi Giannoulias, Illinois’ bond ratings have fallen steadily. The loss will cost Illinois taxpayers millions as the new Democratic Governor plans a large increase in the state income tax.

Four days ago, Moody’s downgraded the state’s rating on general obligation bonds from A1 to Aa3. Yesterday Standard & Poor’s reaffirmed a previous downgrade from AA to AA minus. And today, Fitch Ratings placed Illinois’ AA minus rating on a negative credit watch.

These multiple downgrades of Illinois’ credit rating reflect a growing concern in the market of Illinois’ ability to remain solvent in the face of a $12 billion deficit and the most underfunded pension system in the country. This loss of confidence will cost Illinois taxpayers millions as the new Democratic Governor plans a large increase in the state income tax.

“Alexi Giannoulias should have spent more time looking out for the working families of Illinois and less time grooming himself for higher office,” continued Trover.

Illinois’ Junior Senate seat became the focus of the criminal prosecution of Governor Blagojevich last December. The field for the Democratic nomination Illinois senate race next year is crowded, with former Commerce Secretary Bill Daley (D-IL), former Blagojevich Press Secretary Cheryl Jackson (D-IL), US Rep. Jan Schakowsky (D-IL), and US Rep. Jesse Jackson Jr. (D-IL) all expected to make announcements about the February 2010 Democratic primary soon.