Kroll Bond Rating Agency Downgrades Connecticut
July 19, 2016Hartford – Today Kroll Bond Rating Agency downgraded Connecticut to an AA- rating. This is the fourth credit rating agency to reduce the creditworthiness of Connecticut’s bonds over the last six months.
For remarks, Senate Minority Leader Len Fasano (R-North Haven) would like to refer to his comments on recent downgrades and negative outlooks:
- May 19, 2016 when Standard & Poor’s and Fitch Ratings both announced downgrades of Connecticut’s General Obligation bonds from AA to AA- http://ctsenrepublic.wpengine.com/2016/05/fasano-statement-on-credit-rating-agency-downgrades/
- March 10, 2016 when three credit rating agencies identified a “Negative Outlook” for Connecticut http://ctsenrepublic.wpengine.com/2016/03/fasano-statement-re-three-credit-rating-agencies-identify-negative-outlook-for-connecticut/
Key rating concerns raised by KBRA today include:
- Very low budget reserve fund balance
- State’s difficulty in accurately projecting personal income tax collection and continued lack of growth in wages across the stat
- Very high state debt burden on a per capita basis and as a percentage of personal income
- Relatively high level of unfunded liabilities