S &P Global Ratings has improved its outlook on the city of Hartford’s long-term debt, from “stable” to “positive.”
It’s another notch in the city’s belt since a $550 million debt assistance package the legislature passed in 2017 led to significant credit upgrades from several ratings agencies.
S&P said it revised Hartford’s long-term issuer credit rating due to the city’s improved “management and financial controls, which have yielded balanced operations and greater operating flexibility.” It also affirmed its existing “BB+” rating on the city’s debt.
The Hartford Stadium Authority, which financed the development of downtown’s Dunkin’ Donuts Park, also received an improved positive outlook on its lease revenue bonds, which remain at a rating of “BB.”
Helping Hartford’s budget situation this fiscal year is an anticipated debt assistance payment from the state of $45.6 million.
“In our view, the city’s underlying credit profile, despite its economic and taxing challenges, has improved and we believe there is a one-in three chance the rating could improve to investment grade in two years, provided it continues to produce balanced operating results in accordance with its financial recovery plan,” S&P said in its report.
The positive outlook, according to Mayor Luke Bronin, who is running for reelection, proves the city’s work in tackling its fiscal crisis is being addressed “honestly, and comprehensively.”
“For the first time in a long time, we have a serious, transparent financial plan that gives us a foundation to build on as we work to promote growth across our city,” Bronin said.
