Connecticut; Appropriations; General Obligation; General Obligation Equivalent Security; Moral Obligation

S&P Global Ratings has revised its outlook to negative from stable on the State of Connecticut's approximately $19 billion general obligation (GO) debt outstanding. At the same time, S&P Global Ratings has affirmed its 'A+' rating on the GO debt. S&P Global Ratings has also revised its outlook to negative from stable on the state's 'A' rated appropriation-secured debt, and its 'BBB+' rated state moral obligation debt. The outlook change reflects what we believe to be increasing constraints on Connecticut achieving long-term structural balance, highlighted by the state's delay in enacting a fiscal 2018-2019 biennium budget for the period that began July 1, 2017. These budget constraints include revenue weakness because of slow economic growth and recent population decline and

...S&P Global Ratings has revised its outlook to negative from stable on the State of Connecticut's approximately $19 billion general obligation (GO) debt outstanding. At the same time, S&P Global Ratings has affirmed its 'A+' rating on the GO debt. S&P Global Ratings has also revised its outlook to negative from stable on the state's 'A' rated appropriation-secured debt, and its '###+' rated state moral obligation debt. The outlook change reflects what we believe to be increasing constraints on Connecticut achieving long-term structural balance, highlighted by the state's delay in enacting a fiscal 2018-2019 biennium budget for the period that began July 1, 2017. These budget constraints include revenue weakness because of slow economic growth and recent population decline and reduced revenue-raising flexibility after substantial tax increases were instituted in the last two biennium budgets. We believe several recent high profile relocations of various business headquarters out of state...

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