...S&P Global Ratings has lowered its ratings on the State of Connecticut's general obligation (GO) debt outstanding to '##-'from '##', appropriation-secured debt to 'A+' from '##-', and Connecticut's moral obligation debt to 'A-' from 'A'. The outlook on all debt is stable. At the same time S&P Global Ratings has assigned its '##-' rating and stable outlook to Connecticut's $510 million GO refunding bonds. The downgrade reflects our view of reduced state budgetary flexibility. Substantial revenue shortfalls over the past year have left Connecticut with what we believe are low reserves and an increasing share of the budget devoted to fixed costs. In our opinion, Connecticut has less flexibility to meet unanticipated revenue shortfalls, such as those that occurred in fiscal 2016, and may be poorly positioned should there be a national economic downturn in the next several years. The state is not budgeting to restore reserves in fiscal 2017, and projected out-year budget gaps in 2018 and beyond...
