CT Receives First Credit Rating Upgrade In More Than 20 Years

CONNECTICUT — Moody's Investors Service has upgraded the state's General Obligation bonds credit rating from "A1" to "Aa3." It's the first credit rating upgrade Connecticut has received since February 2001.

The upgrade of Connecticut's GO rating reflects "the state's continued commitment to numerous governance improvements that have already borne fruit in the accumulation of significant budgetary reserves and good financial performance through the pandemic," the investors service said in a statement Wednesday.

"The Aa3 rating also reflects Connecticut's high income and wealth levels offset by a lagging economy and recent consecutive years of population loss, which make liabilities more burdensome," according to the new release.

Gov. Ned Lamont called the upgrade an indicator of the state's "comeback":

"We are a national leader in combating the COVID-19 pandemic, and due to our wise investments, robust savings, better than anticipated revenues, and generous federal support we are emerging as a financial leader among the states. We have also been committed to paying down our long-term pension liabilities, and been prudent in our budget management, as we ended the last fiscal year in surplus and are projected to do so to the end the current fiscal year."

The governor said he expects the new report will build confidence in the business community, and our residents.