Connecticut once again has the worst credit quality in the country, according to a bi-annual ranking by Hartford’s Conning Inc.
The state fell three spots from a ranking of 47th in May, which Conning said was due to slow job growth, declining tax receipts and a high debt burden.
The insurance industry asset manager said the state’s unemployment picture has not improved since its last report. Also, gross state product remains below 2008 levels and 2013 tax revenues are lower than they were last year.
The report said Connecticut needs economic and employment growth coupled with prudent debt management in order to improve its ranking.
Connecticut was also ranked last in Conning’s Nov. 2012 ‘State of the States’ report. The state ranked 37th in Nov. 2011.
Positives noted in the report are Connecticut’s general obligation bond ratings and its history of solving budget problems. The state has the highest per capita income in the country, and strong demand for its tax-exempt bonds is keeping borrowing costs low, Conning said.
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