HARTFORD, Conn. — Without a budget for 105 days, Standard & Poor’s Global Ratings sent the state a message Friday when it downgraded its outlook for Connecticut’s general obligation bonds to “negative.”
It didn’t lower the bonding rating from A+, but it revised its outlook from stable to negative for the state’s $19 billion in general obligation debt.
“The outlook change reflects what we believe to be increasing constraints on Connecticut achieving long-term structural balance, highlighted by the state’s delay in enacting a fiscal 2018-2019 biennium budget for the period that began July 1, 2017,” S&P Global Ratings credit analyst David Hitchcock said. “These budget constraints include revenue weakness because of slow economic growth and recent population decline and reduced revenue-raising flexibility after substantial tax increases were instituted in the last two biennium budgets.”
State Treasurer Denise Nappier said the change “affirms how essential it is that the State swiftly adopt a biennial budget and demonstrate to the bond markets its commitment to fiscal stability.”
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