Connecticut's Series 2016A And B Special Tax Obligation Bonds Rated 'AA' With A Stable Outlook

NEW YORK (S&P Global Ratings) Sept. 2, 2016--S&P Global Ratings has assigned its 'AA' long-term rating, and stable outlook, to the State of Connecticut's $800 million series 2016A special tax obligation (STO) bonds for transportation infrastructure purposes, and $200 million series 2016B STO refunding bonds for transportation infrastructure purposes. At the same time, S&P Global Ratings has affirmed its 'AA' rating on the state's STO senior parity bonds ($4.2 billion) and second-lien bonds ($257.4 million). The outlook is stable. The STO bonds are secured by a first-lien pledge of revenues to the Special Transportation Fund (STF), paid before transportation operations. According to bond counsel, the funds are deemed to be appropriated each year and no further legislative approval is required.

...NEW YORK (S&P Global Ratings) Sept. 2, 2016--S&P Global Ratings has assigned its '##' long-term rating, and stable outlook, to the State of Connecticut's $800 million series 2016A special tax obligation (STO) bonds for transportation infrastructure purposes, and $200 million series 2016B STO refunding bonds for transportation infrastructure purposes. At the same time, S&P Global Ratings has affirmed its '##' rating on the state's STO senior parity bonds ($4.2 billion) and second-lien bonds ($257.4 million). The outlook is stable. The STO bonds are secured by a first-lien pledge of revenues to the Special Transportation Fund (STF), paid before transportation operations. According to bond counsel, the funds are deemed to be appropriated each year and no further legislative approval is required. We base our ratings on our assessment of the following factors: + A diverse mix of pledged revenues, in our view, that are levied on a large statewide economic base (population: 3.6 million); + Connecticut's...

Ratings Action