High debt and fiscal vulnerability were two factors behind one credit ratings agency’s decision this week to downgrade Connecticut’s general obligation bonds.
Fitch Ratings downgraded its outlook on the state from “stable” to “negative.” Fitch said the state has “reduced fiscal flexibility at a time of lingering economic and revenue uncertainty.”
The agency said the state’s budget delays repayment of deficit borrowing, adds to the debt load and fails to rebuild a financial cushion.
Three other agencies — Moody’s, S&P and Kroll — reaffirmed their ‘‘stable’’ outlooks for the state, according to the Associated Press.
Benjamin Barnes, the state’s secretary of the Office of Policy and Management, told the AP he was pleased to see the three rating agencies affirm their ratings.
Barnes told the AP that the agencies affirmed that the state’s revenue forecasts are reasonable and that bonds continue to be a safe investment.
