Illinois' credit rating took another hit Friday, with S&P Global Ratings downgrading the state by one level to BBB.
The credit downgrade, which puts Illinois two levels above junk status, was due to "continued weak financial management and increased long-term and short-term pressures tied to declining pension funded levels," according to S&P.
Illinois could see its credit rating lowered again "should the state continue to demonstrate a lack of ability or willingness to adopt a long-term structural budget solution that also incorporates a credible approach to its long-term liabilities," the credit ratings agency said.
Last week, Moody's Investor Services and Fitch Ratings kept Illinois' credit rating at Baa2 and BBB+, respectively.
Illinois, which has the nation's worst state credit rating, is slated to sell $1.7 billion in general obligation bonds this month.
A credit rating drop means taxpayers will pay an ever larger tab when the state borrows money.