The state has received ratings from two agencies for $61.6 million worth of general obligation refunding notes set to sell next week.
The notes will be used to restructure outstanding economic recovery notes by extending part of the debt service payment by as much as three years.
Fitch Ratings has assigned a rating of ‘AA’ with a negative outlook, while Moody’s Investors Service has assigned a ‘Aa3’ rating with a stable outlook.
The ratings agencies said Connecticut is challenged by the cost of its pension obligations, vulnerability to fluctuations in capital gains tax revenue, reliance on one-time budget revenues, and relatively high debt.
Strengths include high per-capita wealth and the state’s commitment to replenishing its rainy day fund.
