Three major rating agencies have reaffirmed their ratings of Connecticut”™s general obligation bonds, though two of the agencies have a negative outlook on the bonds.
Moody”™s Investors Service, Standard & Poor”™s and Fitch Ratings have announced that Connecticut”™s general obligation bonds will remain rated at Aa3, AA and AA, respectively. The state treasurer”™s office said Kroll Bond Rating Agency’s AA rating also is expected to be reaffirmed Tuesday.
The rating news comes in advance of a $500 million general obligation bond sale being offered this week.
Despite reaffirming its rating, Standard & Poor”™s placed a negative outlook on Connecticut”™s general obligation bonds, meaning the rating will be under review over the next two years. Fitch Ratings also has a negative outlook on the state”™s general obligation bonds, which it first put in place in July 2013.
“Today”™s news is bittersweet, no doubt,” state Treasurer Denise Nappier said in a press release. “While there is the good news that the state”™s ratings remain unchanged ”“ which demonstrates continued confidence in our creditworthiness ”“ the recent negative outlook further strengthens our resolve to fortify the state”™s fiscal footing.”
Moody”™s continues to have a stable outlook on the Nutmeg State”™s bonds, stating, “The outlook for Connecticut is stable, reflecting the positive steps the state has taken to address its long-standing balance sheet weakness and reduce its fixed post-employment benefit costs through pension reforms, as well as the adoption of a budget that largely relies on recurring solutions.”
