Blagojevich Scandal Delays State Debt Offering

01/11/2009 05:12 am ET | Updated May 25, 2011

The corruption scandal surrounding Gov. Rod Blagojevich is already affecting the state's precarious finances.

Illinois has postponed a $1.4-billion short-term debt offering scheduled for Thursday. And late Wednesday, credit-rating agency Standard & Poor's Ratings Services said it may downgrade the state's AA general obligation bond rating, citing a growing deficit and concern over "the legal charges now facing the governor and his chief of staff."

The debt offering, which would have helped close Illinois' $4-billion operating deficit, fell through because the state was unable to complete required paperwork and didn't obtain the credit ratings it needed.

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