SPRINGFIELD - Signs emerged Thursday that the bombshell corruption charges against Gov. Rod Blagojevich are beginning to affect the operation of state government.

The Standard & Poor's credit rating agency put the state on a credit watch at the same time officials were in the midst of borrowing up to $1.4 billion to help pay a massive backlog of bills.

In a statement, S & P credit analyst John Kenward said the legal charges against Blagojevich "may challenge the state to respond to this fiscal situation on a timely basis."

Any change in the state's credit rating could result in higher borrowing costs, which eventually affect taxpayers.

"If the state were downgraded, it would mean the state would have to pay significantly more," said Sara Wojcicki, spokeswoman for Illinois Treasurer Alexi Giannoulias.

The treasurer's office estimates a worst-case downgrade could cost taxpayers an extra $2.3 million if $1.4 billion were borrowed for six months.

The credit warning sparked Lt. Gov. Pat Quinn to call for a quick resolution to the governor's situation. The governor-in-waiting either wants Blagojevich to resign or for the General Assembly to impeach him.

"Hopefully, matters can be resolved in the next few days that will erase any doubt on the part of the credit agencies," Quinn said. "It's always bad to have your credit rating reduced."

Blagojevich has not signaled he's ready to resign, despite wiretap evidence that he tried to sell Illinois' vacant Senate seat for personal gain.

The governor went to his state office in Chicago Thursday, but has kept a low profile in the wake of his arrest and court hearing Tuesday. A spokesman did not respond to requests for information Thursday.

In a press conference in Springfield, Quinn said he has no potential frontrunners for the Senate seat, which became vacant with Barack Obama's election as president.

"I don't want to get into anything because I think it's premature and hypothetical," Quinn said.

Quinn did not provide a blueprint for how he would choose a successor, but ruled out naming himself to the seat.

He said he hasn't been approached by any wannabe senators looking to curry favor with the man who may become the state's 41st chief executive.

Although Quinn has long been a proponent of giving voters a voice in state policy issues through referendums, he downplayed attempts by lawmakers to schedule a special election as a way to keep Blagojevich from appointing someone to the Senate seat.

That drew an angry rebuke from state Sen. Christine Radogno, a Lemont Republican who is set to become Senate minority leader in January.

"It is ludicrous to talk about anyone appointing the next United States Senator," Radogno said. "This decision absolutely must be made by the voters of Illinois."

The House and Senate return Monday to discuss legislation that would strip Blagojevich of his power to appoint.

State Rep. Dan Brady, a member of the House Elections and Campaign Reform Committee, said he hopes lawmakers can get a plan in place for a special election to take place Feb. 24 - the same day municipal primary elections are scheduled.

"They way this process has been poisoned, the people need to be given a voice," said the Bloomington Republican.

Rather than focus on setting up a special election, Quinn said state lawmakers should immediately launch impeachment proceedings against Blagojevich if he doesn't resign before the General Assembly returns to Springfield Monday.

If lawmakers don't take action, Quinn said he backs Attorney General Lisa Madigan's idea of going to court and challenging the governor's fitness to serve.