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

S&P Global Ratings assigned its 'A' long-term rating to the State of Connecticut's series 2019B general obligation (GO) refunding bonds. At the same time, we affirmed our 'A' long-term rating on the state's outstanding GO debt, our 'A-' long-term rating on its appropriation backed obligations, and our 'BBB' long-term rating on its moral obligation debt outstanding. The outlook is positive. Connecticut's GO rating has remained on positive outlook since March 2019. The state is likely to maintain recently replenished reserves over the fiscal 2020-2021 biennium at levels we consider strong and has the potential to moderate its currently high debt levels if the governor's proposal for a "debt diet" is carried through into policy. Currently, Connecticut remains the only state

...S&P Global Ratings assigned its 'A' long-term rating to the State of Connecticut's series 2019B general obligation (GO) refunding bonds. At the same time, we affirmed our 'A' long-term rating on the state's outstanding GO debt, our 'A-' long-term rating on its appropriation backed obligations, and our '###' long-term rating on its moral obligation debt outstanding. The outlook is positive. Connecticut's GO rating has remained on positive outlook since March 2019. The state is likely to maintain recently replenished reserves over the fiscal 2020-2021 biennium at levels we consider strong and has the potential to moderate its currently high debt levels if the governor's proposal for a "debt diet" is carried through into policy. Currently, Connecticut remains the only state with a potentially high enough debt burden to trigger a one-notch downward override rating adjustment under our state rating methodology. During our two-year outlook horizon (since March 2019), we could raise the state...

Summary