Second credit rating agency upgrades Connecticut's bond outlook

A second credit rating agency has upgraded Connecticut’s general obligation bond outlook, a move hailed by Gov. Ned Lamont and state Treasurer Shawn Wooden as a sign the state’s finances are beginning to stabilize.

Kroll Bond Rating Agency upgraded its outlook this week from negative to stable.

The move follows by four months Standard & Poors upgrading their outlook from stable to positive. The other two of the Big Three credit rating agencies — Moody’s and Fitch — have previously given Connecticut a stable outlook. A better outlook means a rating agency is less likely to downgrade the state’s credit rating, which would likely increase interest rates when borrowing for capital projects.

“The credit rating agencies have affirmed Connecticut is continuing to move in the right direction, but there is still much work to be done,” Lamont said in a written statement. “This year we were able to deliver an honestly balanced budget on time that held the line on tax rates for everyone, took significant steps to address the fixed costs, and added to our reserves — creating the largest budget rainy day fund in state history. In addition, we have remained firm that our capital expenses need to be scaled back and we need to focus on sustainable, predictable, and forward-looking solutions to ensure Connecticut’s future remains bright."

Read more: https://www.courant.com/politics/capitol-watch/hc-pol-connecticut-credit-rating-20190710-jyx6m7gcubaebgf4lrtc3onhx4-story.html
(Hartford Courant)