The rating on Connecticut's bonds reflects: 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; and 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. Since 1997, the state has been lowering its gas tax rates to be more competitive with surrounding states. During
