A day after Fitch Ratings assigned an ‘AA’ rating and negative outlook to $500 million in state bonds, Kroll Bond Rating Agency assigned the same rating, but with a stable outlook.
In both instances, ‘AA’ means the agencies think Connecticut has a very low default risk. A stable outlook indicates that Kroll thinks the state is likely to keep its rating in the medium term. A negative outlook indicated that Fitch may downgrade the state in the next one to two years, but it is no guarantee.
Bond ratings are a factor in the interest rates the state pays on its borrowings.
