Fitch Rating Statement from Sen. Boucher

October 1, 2013

Hartford, CT – Senator Toni Boucher (R-Wilton), a member of the Finance Revenue and Bonding Committee released the following statement today re: Fitch Ratings negative outlook on Connecticut’s bonding.

“Less than a week ago, in response to a report conducted by the Connecticut Center of Economic Analysis which suggested massive borrowing and spending would lift the state out of the economic doldrums I stated that, ‘More borrowing is not going to get the state out of this mess. This action could further deteriorate our bond rating.’

“Unfortunately, with Fitch’s reaffirmation of our previous rating that prediction came true. Fitch gave Connecticut GO bonds a ‘AA’ rating, assigning our state with a negative outlook.

“Fitch analysts based their economic outlook on “budget vulnerability” among a number of other factors. They further stated that the negative outlook “reflects the state’s reduced fiscal flexibility at a time of lingering economic and revenue uncertainty. The enacted budget for the new biennium delays repayment of deficit borrowing, adds to an already high debt load, and fails to rebuild the state’s financial cushion.”

Fitch Ratings first downgraded Connecticut’s outlook to negative in July 2013. Moody’s Investor Services also has downgraded Connecticut’s G.O. bond rating. Thus far this administration has increased its borrowing by nearly 30% in the last two years.