Fasano Statement re: Three Credit Rating Agencies Identify “Negative Outlook” for Connecticut

March 10, 2016

Hartford – Senate Minority Leader Len Fasano (R-North Haven) released the following statement regarding four major credit rating agencies’ new bond ratings and outlooks announced by State Treasurer Denise L. Nappier today.

“It should be concerning to all legislators in the state that three agencies identify a ‘negative outlook’ for Connecticut, with two of those agencies lowering their past ‘stable’ assessments. Connecticut is moving in the wrong direction thanks to years of failed Democrat policies and people are taking notice. We have billion dollar deficits in the near future. And debt service is almost 13 percent of our state budget and growing. These numbers are what we should all be fearful of – because if we continue down this unsustainable path our state will never be able to dig ourselves out of the hole,” said Fasano.

“We can pave a new path, but the first step has to be making significant long-term structural changes to the way our state budgets – changes Republicans have repeatedly identified, and Democrats have repeatedly ignored.”

Two of the credit rating agencies, Moody’s and Kroll, placed the State’s General Obligation bonds on negative outlook. Fitch affirmed its stable outlook, while Standard & Poor’s continued its negative outlook, first put in place in March 2015. A “negative outlook” generally means that a credit rating will be under review for one to two years.