Summary: Connecticut; Appropriations; General Obligation; General Obligation Equivalent Security; Moral Obligation

S&P Global Ratings has assigned its 'AA-/A-1' ratings to the State of Connecticut?s $300 million general obligation (GO) bonds, 2016 series C (variable-rate demand bonds). At the same time, S&P Global Ratings affirmed its 'AA-' rating on Connecticut's GO debt outstanding, its 'A+' rating on the state's appropriation-secured debt, and 'A-' moral obligation debt rating. The outlook is stable. The 2016C bonds are being issued as variable-rate demand obligations. The rating's 'AA-' long-term component reflects our view of the state's GO pledge. The 'A-1' short-term component reflects the short-term rating on Bank of America N.A. (A/Watch Pos/A-1), which is providing an enhancement for the bonds in the form of a standby bond purchase agreement (SBPA). The SBPA will cover the

...S&P Global Ratings has assigned its '##-/A-1' ratings to the State of Connecticut's $300 million general obligation (GO) bonds, 2016 series C (variable-rate demand bonds). At the same time, S&P Global Ratings affirmed its '##-' rating on Connecticut's GO debt outstanding, its 'A+' rating on the state's appropriation-secured debt, and 'A-' moral obligation debt rating. The outlook is stable. The 2016C bonds are being issued as variable-rate demand obligations. The rating's '##-' long-term component reflects our view of the state's GO pledge. The 'A-1' short-term component reflects the short-term rating on Bank of America N.A. (A/Watch Pos/A-1), which is providing an enhancement for the bonds in the form of a standby bond purchase agreement (SBPA). The SBPA will cover the purchase price, consisting of the principal and interest coverage at the maximum interest rate of 9% for 34 days per year, for bonds that are not successfully remarketed. The SBPA is due to expire on June 13, 2019, unless...

Summary