A key consideration in the upgrade was the state's recent actions in both addressing longstanding obligation repayments and rapidly repaying obligations taken on during the pandemic-induced recession, S&P said.
Illinois Gov. J.B. Pritzker signed legislation sending a portion of the state's surplus to the budget stabilization fund and raising the target balance.
The state will use surplus revenues to pay off the remaining $1.36 billion balance and will loan the trust another $450 million to bolster its health with repayment going toward the state's budget stabilization fund.
Illinois raised its fiscal 2023 revenue estimates by $3.69 billion, giving Gov. J.B. Pritzker enough to propose doubling the state's $1 billion rainy day fund.