With the state’s Bond Commission prepared to approve a slate of borrowing on Wednesday, Fitch issued an ‘AA’ rating on $500 million worth of Connecticut general obligation bonds and assigned a negative outlook.
The state has earned an AA rating, which signifies “very low default risk,” for some time. Fitch —one of four major rating firms — downgraded its Connecticut outlook from stable to negative in 2013, where it has remained since.
As it has said in past assessments, the ratings company pointed to Connecticut’s budget vulnerability, reduced fiscal flexibility, relatively high debt, reliance on one-time budget revenues, and other metrics.
