The rating on Connecticut's bonds reflects the following strengths: * Strong legal provisions that limit parity debt issuance and a reserve account funded from bond proceeds at maximum annual debt service (MADS); * Solid debt service coverage with positive trends in pledged revenue receipts; * Approved legislative changes have limited responsibilities placed on the fund and resulted in an expenditure reduction of $472 million between 1998-2002; and * Revised budget projections for the Special Transportation Fund, reflecting more of a balance between the responsibilities placed on the fund and the funding sources earmarked for the capital improvement program. Credit risks include: * Continued political pressure to reduce the gas tax rate, including two pending proposals that will reduce the rate
