Fitch Ratings has assigned a “AA” rating and “negative” outlook to $510 million in Connecticut general obligation bonds set for an Aug. 6 sale.
Fitch assigned identical ratings in June and March for state GO bond sales totaling $600 million.
Like it has in the past, the agency said its negative outlook is based on the state’s reduced fiscal flexibility and reliance on one-time revenues in its budget.
As opposed to a stable or positive outlook, a negative outlook indicates that the state’s bond rating is likely to be downgraded over the next two years, but does not indicate that a downgrade is inevitable, according to Fitch.
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Fitch also affirmed its AA rating and negative outlook for $14.9 billion in outstanding Connecticut GO bonds and notes.
