The 'AA-' rating on Connecticut's special tax obligation bonds reflects: Strong legal provisions that limit parity debt issuance, coupled with a fully funded reserve account; Solid maximum annual debt service (MADS) coverage, with positive trends in pledged revenue receipts; An established 20-year track record with $5.2 billion in debt issued to date; Strong management; and Continued efforts to maintain a balance between revenue sources and programmatic responsibilities, even while reducing the state gas tax rate. Credit risks include: A sizable, but well-defined, capital improvement program that includes annual future debt issuance; and A still-concentrated, but diversifying, pledged revenue stream that is susceptible to economic conditions related to changes in the price and availability of motor vehicle fuel. The bonds are
