CHICAGO (AP) - Illinois is on track to become the first U.S. state to have its credit rating downgraded to "junk" status, which would deepen its multibillion-dollar deficit and cost taxpayers more for years to come.
S&P Global Ratings has warned the agency will likely lower Illinois' creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year.
That would increase the amount the state will have to pay to borrow money for things such as building roads or refinancing existing debt.
The outlook for a deal isn't good as lawmakers meeting in Springfield for a special legislative session remained deadlocked with the July 1 start of the new fiscal year approaching.
Ratings agencies already have lowered five universities to junk status.