Not much has changed about the way Hartford-based investment manager Conning perceives Connecticut’s credit quality.
In its latest biannual state ranking, Conning ranked its home state 46th in the country, the same as a year ago, but one spot better than Connecticut ranked in Conning’s Oct. 2017 “State of the States” report.
Conning’s ranking cited Connecticut’s relatively high levels of economic debt, low general fund reserve balance and slow growth in employment, personal income and GDP.
Connecticut ranked highly in several categories, including GDP per capita, tax revenue growth and personal income per capita.
Conning said that economic growth has been concentrated in the western and southeastern United States.
It also noted that the federal tax cuts passed late last year have made municipal bonds less attractive to property-casualty insurers and banks, which account for approximately 25 percent of bond purchases. However, Conning thinks life insurers may find such bonds more attractive, following the cuts.
