The rating on Connecticut's bonds reflects the following strengths: Strong legal provisions that limit parity debt issuance coupled with a fully funded reserve account, Solid debt service coverage of maximum annual debt service (MADS) with positive trends in pledged revenue receipts, The state's continued efforts to maintain a balance between revenue sources and programmatic responsibilities, even while reducing the state gas tax rate. Credit risks include: A sizable, but well-defined, capital improvement program that includes annual future debt issuance; and A concentrated pledged revenue stream that is susceptible to economic conditions related to changes in the price and availability of motor-vehicle fuel. Legislation approved by the state in 1998 accelerated the scheduled reduction in the gas tax rate to four
