Summary: Connecticut; Gas Tax

S&P Global Ratings has assigned its 'A+' rating to State of Connecticut's series 2020A first-lien special tax obligation (STO) bonds and affirmed its 'A+' rating on the state's first-lien STO bonds outstanding. The outlook is stable. The rating is based on the application of our "Priority-Lien Tax Revenue Debt" criteria (published Oct. 22, 2018 on RatingsDirect), which factors in both the strength and stability of the pledged revenues, as well as the general creditworthiness of the state as issuing obligor. The priority-lien rating on the STO bonds is limited to one notch above our view of Connecticut's creditworthiness (general obligation [GO] rating: 'A/Stable') and is constrained from going higher unless there is an improvement in the state GO rating. In

...S&P Global Ratings has assigned its 'A+' rating to State of Connecticut's series 2020A first-lien special tax obligation (STO) bonds and affirmed its 'A+' rating on the state's first-lien STO bonds outstanding. The outlook is stable. The rating is based on the application of our "Priority-Lien Tax Revenue Debt" criteria (published Oct. 22, 2018 on RatingsDirect), which factors in both the strength and stability of the pledged revenues, as well as the general creditworthiness of the state as issuing obligor. The priority-lien rating on the STO bonds is limited to one notch above our view of Connecticut's creditworthiness (general obligation [GO] rating: 'A/Stable') and is constrained from going higher unless there is an improvement in the state GO rating. In our view, the STO bonds do not benefit from limited scope of operations or extraordinary expenditure flexibility of the obligated entity, despite strong revenue coverage of debt service, while we believe pledged revenues could have exposure...

Summary