Moody's Investment Service downgraded Illinois' credit rating to A2 from A1 on Friday as the state sets out to sell $800 million on bonds. Moody's said the decision to downgrade the state's credit rating came as a result of "a legislative session in which the state took no steps to implement lasting solutions to its severe pension underfunding or to its chronic bill payment delays," accoridng to the report.

The move made Illinois the worst rated state in the nation, according to Moody's, displacing California as the state with the gloomy distinction.

Officials for Standard & Poor's and Fitch Ratings both said that they will not downgrade the state, although they both mentioned that the state is facing substantial financial difficulties and stumbling blocks.

Pointing to the decisions by S&P's and Fitch, Gov. Pat Quinn brushed off Moody's downgrade, calling it an "outlier decision."

"Although the state has taken positive steps toward fiscal stability, swift bipartisan action to implement further cost reductions and reforms in the upcoming legislative session are needed to stabilize the budget," spokeswoman Kelly Kraft said in a statement, according to Bloomberg.