by Donald Eng
HARTFORD, CT — S&P Global has revised Connecticut’s debt rating outlook from stable to positive and affirmed its AA- bond rating, according to a statement from the company Thursday.
In the statement, S&P said the rating revision “reflects our view of Connecticut’s commitment to reducing its high unfunded pension liabilities while sustaining budgetary balance and healthy reserves.”
The outlook revision also reflects S&P’s expectation that the state would maintain its commitment to fiscal balance and reducing long-term liabilities in the next fiscal biennium, while not significantly altering the guardrails it established to support budget predictability and fiscal balance, lower unfunded pension liabilities, and limit annual debt issuance, according to the statement
The state’s outlook could be revised downward if debt and liabilities rise to less sustainable levels, the company said.
Connecticut’s financial officials celebrated the announcement. Treasurer Erick Russell said the revision was “another affirmation of our fiscal direction and the long-term commitments we’ve made to strengthen the state’s balance sheet.”
Russell added the revision reflected disciplined budgeting and a progress in reducing pension liabilities.
“Stronger credit ratings help lower borrowing costs and expand Connecticut’s capacity to invest in the priorities that matter to our residents,” he said.
Gov. Ned Lamont agreed, saying investor confidence in the state’s fiscal stability continued to grow.
“Wall Street is clearly recognizing the hard work Connecticut has done to put our fiscal house in order,” he said.
Connecticut Office of Policy and Management Secretary Joshua Wojcik said the improved outlook sent a message to employers and investors that Connecticut had built a strong and stable fiscal foundation.
“Businesses looking to invest and expand want predictability, responsible government, and confidence that a state is positioned for long-term economic growth,” he said. “Connecticut is doing just that.”
For more information on Connecticut’s bonding programs, visit buyCTbonds.gov.