A major Wall Street rating agency has assigned an “A+” rating to a $250 million bond package the state of Connecticut plans to sell later this month.
Fitch Ratings on Tuesday also gave a ratings outlook of “stable” on the general obligation issue.
The New York-based agency said the rating reflects the state’s “broad economic resource base” and “continued fiscal flexibility” provided by its recently adopted $43 billion two-year budget.
However, flat economic performance and an above average long-term liability burden continue to be challenges for Connecticut, the report said.
“Funding requirements for elevated liabilities are a moderate burden on the wealthy resource base but they limit expenditure flexibility compared with that of most states,” Fitch said.
Gov. Ned Lamont issued a statement after Fitch released its report, saying the stable outlook demonstrates the state’s improved financial health.
“This year we were able to deliver an honestly balanced budget on time that held the line on tax rates for everyone, took significant steps to address the fixed costs, and added to our reserves – creating the largest budget rainy day fund in state history,” Lamont said.
He continued: “…we have remained firm that our capital expenses need to be scaled back and we need to focus on sustainable, predictable, and forward-looking solutions to ensure Connecticut’s future remains bright.”
