Sen. McKinney’s Statement on CT Bond Ratings

July 2, 2013

State Senate Minority Leader John McKinney (R-Fairfield) on actions taken in recent days by bond rating agencies and the Malloy administration’s response.

Senator McKinney: “Either the Malloy administration is looking at the negative impact of their fiscal mismanagement through rose colored glasses, or they’re just not being honest with the people of Connecticut.

“The facts speak for themselves. Connecticut’s bond ratings are worse than they were when Governor Malloy took office, they have not recovered, and they are heading in the wrong direction.

“Here is a direct quote from Fitch: ‘The Negative Outlook is based on the state’s failure to return to more structurally sustainable budgeting and rebuild flexibility at a time of unusually slow economic and revenue recovery.’

“Connecticut’s bond ratings have yet to return to pre-Malloy levels because Democrats have again passed a budget with unsustainable spending offset by one-time gimmicks and more state borrowing.

Background: The Fitch rating agency today downgraded the outlook on State of Connecticut GO bonds to “negative.” In addition to Fitch downgrading Connecticut’s outlook, Moody’s Investors Service downgraded Connecticut’s bond rating in January 2012 from Aa2 to Aa3 where it remains today (18 months later).