With a second credit downgrade this month, Illinois has overtaken California as the worst credit risk in the United States.
The credit default swap spread for the Illinois general obligation bonds increased to 313 basis points for a five-year contract, which means a bondholder must pay over 3% of the bond’s face value per year to be insured against default. California’s five-year credit default swap is currently at 293.
Illinois has been downgraded 17 times in its history, with almost half of those occurring during the past one-and-a-half years." /> Skip to Main Content
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