Despite CreditWatch Resolutions On Connecticut Municipalities, The State's Long-Term Credit Outlook Remains Weak

BOSTON (S&P Global Ratings) Dec. 19, 2017--S&P Global Ratings says the State of Connecticut's recently enacted budget provides near-term certainty to local governments; however, it believes its ratings on several local governments remain under stress, due to a stagnant statewide economy and the potential for ongoing municipal aid reductions. Overall, statewide credit conditions remain weak and S&P Global Ratings will take this into account for all of its local government ratings. On Sept. 28, 2017, S&P Global Ratings placed its long-term ratings on various Connecticut municipal entities' general obligation (GO) debt on CreditWatch with negative implications. The CreditWatch placements were largely driven by the state budget stalemate and brinksmanship, which would have reduced significant amounts of municipal aid payments to

...BOSTON (S&P Global Ratings) Dec. 19, 2017--S&P Global Ratings says the State of Connecticut's recently enacted budget provides near-term certainty to local governments; however, it believes its ratings on several local governments remain under stress, due to a stagnant statewide economy and the potential for ongoing municipal aid reductions. Overall, statewide credit conditions remain weak and S&P Global Ratings will take this into account for all of its local government ratings. On Sept. 28, 2017, S&P Global Ratings placed its long-term ratings on various Connecticut municipal entities' general obligation (GO) debt on CreditWatch with negative implications. The CreditWatch placements were largely driven by the state budget stalemate and brinksmanship, which would have reduced significant amounts of municipal aid payments to the municipalities' financial detriment. S&P Global Ratings has now resolved all of these CreditWatch placements (see list below). Despite the budget enactment, we...

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