Standard & Poor's followed the lead of Moody's Investor Services Thursday in downgrading Illinois' credit rating.
According to the S&P, the credit drop to BBB-plus with a negative outlook was made due to "mismanagement" as the state is headed into a second year without a budget.
"The downgrade reflects the state's weakened financial management and fiscal position and our view that Illinois' continued delay in developing a long-term plan to address its liabilities is placing increased pressure on the rating," S&P credit analyst John Sugden said.
The "duration of this mismanagement," Sugden added, has stymied the state's progress in hacking away at long-term liabilities, like its $111 billion in unfunded pension liability and a $5 billion operating budget shortfall.
A drop in credit rating means taxpayers will pay an ever larger tab when the state borrows money. As previously reported, Illinois is slated to borrow $550 million next week.