Market debates whether Illinois can capitalize on rating momentum – The Bond Buyer

Reaction has spanned the spectrum with market participants mostly saying it was deserved given the state?s fiscal progress and its COVID-19 pandemic recovery. Some said the upgrade was expected, a reason for the state's narrowing spreads over the past few months. But they are quick to underline that's the near-term view and chronic pension strains, past decisions that favored one-shots, an ongoing structural imbalance and out-migration weigh heavily on the state's fiscal foundation.