A major credit rating agency states that they won’t lower Illinois’ credit rating to “junk” status, but they do warn the state that they face serious financial challenges and long-term risks.  On Thursday, Moody’s Investors Service announced that they would not drop Illinois to “junk,” but that a downgrade could still be possible in the next two years.  Moody’s put Illinois under review for the downgrade earlier this month, after the state entered a 3rd fiscal year without a state budget.  This would have made Illinois the 1st such state in the United States to have a credit rating below investment grade, which would have cost taxpayers millions of dollars more.  The credit rating agency also stated that the budget legislators approved over Governor Bruce Rauner on July 6th has move Illinois closer to fiscal balance.  The agency continued by warning the state that this budget doesn’t reduce their unfunded pension liability, which is larger than any other state.