Connecticut Outlook Revised To Negative From Stable On Weak Revenue Growth; Series 2015A Bonds Rated 'AA'

NEW YORK (Standard&Poor's) March 9, 2015--Standard&Poor's Ratings Services has revised its outlook on Connecticut's general obligation (GO) and appropriation-secured debt outstanding to negative from stable. At the same time, Standard&Poor's has affirmed its 'AA' rating on Connecticut's $16.0 billion parity GO debt outstanding. "The outlook revision reflects our view of increased budget pressure because of weak revenue growth," said Standard&Poor's credit analyst David Hitchcock. Sluggish revenues have contributed to a $1.1 billion projected budget gap the state will need to close in its fiscal 2016 budget, or 6% of expenditures. "We are concerned that structural budget balance is under pressure during a period of national economic growth," Mr. Hitchcock added. Should we

...NEW YORK (Standard & Poor's) March 9, 2015--Standard & Poor's Ratings Services has revised its outlook on Connecticut's general obligation (GO) and appropriation-secured debt outstanding to negative from stable. At the same time, Standard & Poor's has affirmed its '##' rating on Connecticut's $16.0 billion parity GO debt outstanding. "The outlook revision reflects our view of increased budget pressure because of weak revenue growth," said Standard & Poor's credit analyst David Hitchcock. Sluggish revenues have contributed to a $1.1 billion projected budget gap the state will need to close in its fiscal 2016 budget, or 6% of expenditures. "We are concerned that structural budget balance is under pressure during a period of national economic growth," Mr. Hitchcock added. Should we perceive budget pressure to significantly worsen during our two-year outlook horizon, or if currently modest reserves become drawn down significantly during a period of economic growth, we could take a negative...

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