...NEW YORK (S&P Global Ratings) Nov. 15, 2018--S&P Global Ratings has lowered its rating on the State of Connecticut's first- and second-lien special tax obligation (STO) bonds issued for transportation infrastructure purposes to 'A+' from '##'. The outlook is stable. "The downgrade follows the application of our Priority-Lien criteria, which factors in both the strength and stability of the pledged revenues, as well as the general creditworthiness of the state as issuing obligor," said S&P Global Ratings credit analyst David Hitchcock. (See Priority-Lien Tax Revenue Debt criteria published Oct. 22, 2018.) The priority-lien rating on the STO bonds is limited to one-notch above our view of Connecticut's creditworthiness (general obligation rating [GO]: A/Stable) and is constrained from going higher unless there is an improvement in the state GO rating. Should we raise the state GO rating, we could potentially raise the rating on the STO bonds. In our view, the STO bonds do not benefit from...
