A Wall Street credit ratings agency on Wednesday upgraded Hartford’s debt rating as a result of the state agreeing to pay off the city’s approximately $550 million debt over the next 20 years.
Moody’s Investors Service said the financial assistance from the state improved the Capital City’s general obligation bonds rating from “Caa3” to “A2.” The outlook is stable.
Meanwhile, Moody’s said it affirmed the “A1” rating on the state’s general obligation debt and special tax obligation senior and subordinate lien bonds, among others.
“Connecticut’s outlook is stable, reflecting the pending replenishment of the state’s rainy day fund and the state’s strong provisions to promote fiscal discipline, which pair redressing elements of its high leverage position and requiring GAAP-based budgeting,” Moody’s said.
Hartford Mayor Luke Bronin on Thursday said the “dramatic” ratings upgrade reflects the city’s efforts to curb spending over the last two years through negotiated labor savings, engaging the local business community and through its new partnership with the state.
Bronin called the financial assistance agreement with the state the “last, essential piece of our effort to stabilize Hartford’s finances — in an honest, transparent, and comprehensive way.”
