...S&P Global Ratings has revised its outlook on the State of Connecticut to negative from stable. At the same time, S&P Global Ratings affirmed its '##-' rating on Connecticut's general obligation (GO) debt outstanding, its 'A+' rating on the state's appropriation-secured debt, and its 'A-' moral obligation debt rating on the state. S&P Global Ratings also assigned its '##-' rating to Connecticut's approximately $320 million GO refunding bonds, 2016 series G. The outlook revision reflects our view that projected growth in fixed costs could rise to a level that we believe could comprise a substantial proportion of the state budget and thereby hamper Connecticut's budget flexibility as the state addresses large out-year budget gaps. Connecticut projects that debt service, pension, and other postemployment benefit (OPEB) costs will total 32.6% of fiscal 2018 general fund revenue, a level that we see as high and that will potentially increase in future years. Fixed cost growth has led to large...
