(WTVO) — According to a U.S. credit rating agency, Illinois will perform worse economically than other states next year, during what it predicts will be a mild recession.

Fitch says the country’s overall economic conditions will likely worsen through 2023, although “credit quality will remain stable and strong.”

However, Illinois, with the worst credit rating in the United States, is expected to struggle.

“It is fair to say that Illinois is going to face a tougher situation than most other states given its rating level,” Fitch analyst Eric Kim told The Center Square.

Fitch said Illinois’ low rating can be blamed largely on the fact that the state has the largest public employee retirement costs in the country.

Gov. JB Pritzker announced in March that the state will make a $300 million payment to the state’s pension funds, which will reduce liabilities by $1 billion between now and 2045.

The payment is part of a $4.1 billion plan to save taxpayers hundreds of millions of dollars in interest payments. Pritzker and Democratic leaders in the General Assembly called the plan unprecedented, saying it will take financial burdens off of taxpayers and reduce burdens that would fall onto businesses over the next decade.

“Democrats in the General Assembly are overcoming the difficult circumstances of our past and putting working families first,” Pritzker said on Mach 25.

Kim says while the effort is a valiant one for Illinois, it may not be enough to turn the tide next year.

“That in our view is not fully addressing the liability, and the state is going to continue to be in this position until it’s able to really make progress on that particular front,” Kim said.

Illinois had suffered eight credit rating downgrades in the years 2015 to 2017, and the state’s credit rating hovered at just one notch above junk status.