SPRINGFIELD, Ill. (WJPF) — The State of Illinois Tuesday received it’s first credit rating upgrade in over twenty years. 

Moody’s Investors Service cites ‘material improvements’ and ‘constrained use of federal aid’ in upgrading the state’s General Obligation bonds, Met Pier bonds, and Build Illinois bonds. Moody’s last upgraded the state’s bonds in June of 1998.

“I promised to restore fiscal stability to Illinois, and Moody’s ratings upgrade demonstrates that Illinois’ finances are heading in the right direction for the first time in two decades. A ratings upgrade pays momentous dividends for taxpayers, and the people of Illinois deserve credit for their incredible resilience and determination,” said Governor JB Pritzker. “This upgrade is the result of many leaders working together on a strong fiscal plan and putting that plan in place, and I would like to especially thank Speaker Welch, President Harmon, Leader Greg Harris, Senator Sims, Comptroller Mendoza and Treasurer Frerichs for their partnership. I also applaud Moody’s for answering our request to take a fresh look at the State and their willingness to listen to our progress and our plans.”

Moody’s upgraded Illinois’ rating on its General Obligation bonds from Baa3 with a stable outlook to Baa2 with a stable outlook, and also upgraded the Metropolitan Pier and Exposition Authority ratings to Baa3 from Ba1 based on the state’s support. Build Illinois bonds were upgraded to Baa2 from Baa3.

A higher bond rating generally means the state can borrow at a lower interest rate.