Illinois Has Received 12 Credit Rating Upgrades

Business owners in Illinois should track how improved credit ratings influence state-backed borrowing costs.

Updated on Sept. 29, 2026 in Economic Indicators

Isometric editorial illustration of twelve stacked metal weights of increasing size on a stone pedestal, representing fiscal improvement. — Illinois has achieved 12 consecutive credit rating upgrades, driven by higher tax collections and a multi-year trend of balanced state budgets. AI Illustration. Upload story photo >

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The state of Illinois has secured 12 consecutive credit rating upgrades, supported by eight balanced budgets and a 68% increase in tax collections since 2020. These fiscal developments arrive as the state continues to manage the nation's lowest credit rating among U.S. states.

Why it matters

The string of upgrades stems from higher tax revenue rather than expenditure reductions, directly impacting the state's future cost of capital. For operators, these shifts signal changes in the state's fiscal stability and potential adjustments to the broader economic environment in which they compete.

Illinois has logged 12 consecutive credit rating upgrades and eight consecutive balanced budgets. Tax collections have risen 68% since 2020, contributing to $160 billion in additional tax revenue collected under the current administration.

The players

Illinois State Government

The public authority responsible for managing the state's annual budget, tax policies, and sovereign debt obligations.

The details

The state achieved these upgrades through a consistent increase in tax collections combined with a multi-year effort to balance state budgets. While the fiscal strategy has shifted the credit profile, the state remains at the bottom of the national ranking for creditworthiness. Future borrowing costs are expected to decline as a result of these improved ratings, potentially affecting state-level infrastructure and fiscal planning.

2020 served as the baseline year for measuring the 68% increase in tax collections.
In September 2026, the governor highlighted these fiscal achievements during a Chicago luncheon.

Market Landscape

Illinois' recent fiscal improvements follow a long-standing pattern of attempting to reconcile structural debt through adherence to the state's balanced budget requirements. This progress marks a notable departure from historical trends of credit downgrades, even as the state continues to navigate the lowest credit rating among U.S. states.

Owners should monitor state-level borrowing trends, as improved credit ratings may eventually ease fiscal pressure on public projects and regional infrastructure. Watch for future state budget filings to see if higher tax collections lead to sustained debt reduction or expanded public expenditures.

The takeaway

The state's improved credit rating suggests a potential decline in future borrowing costs that may impact the broader economic climate for local businesses. Operators should keep an eye on upcoming state budgetary reports to track how these revenue gains are allocated toward debt service or investment.