Gov. Lamont Hails CT's Upgraded Credit Ratings

CONNECTICUT — In a sign that Gov. Ned Lamont claims is a testament to the state's improving fiscal situation, four financial rating agencies have upgraded Connecticut's credit ratings this year, three of which did so in the past week.

S&P Global recently upgraded the Connecticut's bond rating to A+; Kroll upgraded its rating to AA; and Fitch upgraded it to AA-. In March, Moody's Investors Service upgraded Connecticut's bond rating to Aa3.

Improved credit ratings allows the state to issue bonds and borrow at more attractive interest rates, which can save money for Connecticut's taxpayers.

The four upgrades are the first such improvements in more than 20 years, according to Lamont, and show that Connecticut is climbing out of the fiscal hole it has been in for years.

Despite the improved ratings, Connecticut still faces financial challenges from looming debts, Lamont admitted last year.

"These upgrades by S&P Global, Kroll, Fitch, and Moody’s are independent, third-party validations that our administration is putting Connecticut on the right track," Lamont said. "For years, we've seen negative headlines about our finances and the state's fiscal position, but this is even more proof that we are seeing sustained progress by addressing the sins of the past and investing in the future of this great state. We have made tremendous strides in just a few short years and the credit rating agencies are now taking notice."

According to state Treasurer Shawn Wooden, the credit rating upgrades will affect $24 billion of bonds previously issued by the Office of the State Treasurer including $17 billion of General Obligation bonds, approximately $7 billion of Special Tax Obligation bonds issued for transportation projects, in addition to other related bond issues.

Additionally, the state has $1 billion in previously scheduled General Obligation bond offers beginning this week, including:

• $300 million of bonds to provide new funding for school construction projects across the State
• $300 million of taxable bonds to fund economic development projects, housing, and municipal grants
• $175 million tax-exempt refunding series*
• $225 million tax-exempt forward delivery refunding series*

(*Both refunding series will refund outstanding bonds in order to take advantage of lower interest rates, according to Wooden. The forward delivery refunding series will close in August but will enable the State to realize savings on a tax-exempt basis at today’s lower interest rates.)

Even with the difficulties imposed by the coronavirus pandemic, Lamont said Connecticut's handling of COVID-19 "led the country with common-sense measures which kept our residents safe while keeping our economy moving, and we are incredibly well-positioned to rebound as the impact of coronavirus subsides."

As a result, Lamont is not in favor of "levying large-scale tax increases or creating massive new spending programs" that could damage the Connecticut's still-fragile economy.

"This is the time to continue our strong financial practices, pay down our long-term debt, and foster growth that will enhance our long-term prospects and ensure that everyone knows the future is bright in Connecticut," Lamont said.