Fitch Ratings said it has assigned an “AA” rating and “negative” outlook to $980 million worth of general obligation bonds set for sale starting next week.
The rating signifies very low default risk. The outlook signifies that a downgrade is likely, but not inevitable, within the next two years.
Fitch revised Connecticut’s debt outlook to negative in 2013, where it has remained for a number of borrowings since.
Fitch said that key ratings drivers for the upcoming bond sale includes reliance on one-time budget items, low near-term potential for rebuilding fiscal flexibility, revenue uncertainty, and high fixed costs and pension obligations.