Fitch Ratings on Monday assigned its second-highest rating to $900 million in Connecticut general obligation bonds, but issued a negative rating outlook.
The rated bonds, made up of both conversion bonds and refunding notes, are expected to sell this month.
Fitch said the ‘AA’ rating is based on the state’s high wealth levels, but is tempered by a comparatively high debt burden, retirement liabilities and other fixed costs.
The negative outlook is based on what Fitch said is the state’s failure to return to more structurally sustainable budgeting and to rebuild its financial flexibility at a time of unusually slow economic recovery.
