Fitch Ratings, citing the state’s wealth and economic resources, has assigned an ‘AA’ rating to $250 million of state of Connecticut general obligation bonds, series 2008C, set for sale next week.
The bonds are expected to sell via negotiation the week of Oct. 20, and will mature Nov. 1, 2009-2028. Early redemption provisions will be determined upon final sale.
Fitch also affirmed the ‘AA’ rating on approximately $12.1 billion in outstanding general obligation bonds. The rating outlook is stable, Fitch said.
While debt levels are high, Connecticut ranks first among the states in per capita personal income, at 143 percent of the U.S. level in 2007, according to Fitch.
Revenues are now weakening, leading to a projected deficit in the current year, the rating agency said. The state has responded with spending cuts to date; moreover the state’s budget reserve balance is large, at 8.1 percent of general fund appropriations.
