...S&P Global Ratings has lowered its general obligation (GO) rating on the State of Connecticut to 'A+' from '##-'. S&P Global Ratings has also lowered its rating on the state's appropriation-secured debt to 'A' from 'A+', and its rating on the state's moral obligation debt to '###+' from 'A-'. The outlook is stable. The downgrade reflects our view of state economic weakness that has resulted in successive downward state revenue adjustments during a period of national economic growth. The most recent state revenue forecast revision has prompted the governor to propose a deficit mitigation plan for fiscal 2017 that will empty the state's already small budget stabilization fund (BSF), and that has opened up what we view as very sizable budget gap Connecticut will need to close in the upcoming 2018-2019 biennium budget. We believe the size of the budget gap will create continuing budget pressure consistent with our lower rating, particularly if additional revenue shortfalls occur. In our view,...
