The rating on Connecticut's bonds reflects these strengths: Strong legal provisions, which limit parity debt issuance and include a fully funded reserve account; Solid debt service coverage of maximum annual debt service (MADS) with stable trends in pledged revenue receipts; The state's continued efforts to maintain the integrity of the transportation fund by balancing revenue sources and programmatic responsibilities, even while reducing the state gas tax rate; and A statutory debt reduction requirement with excess reserves of the fund. 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.
