Officials Predict No Debt Rating Fallout In CT

HARTFORD, Conn. (AP) _ Gov. Dannel P. Malloy and his budget
director say they don’t expect Connecticut’s bond rating to feel
the ill effects of Standard and Poor’s decision to downgrade the
federal government’s bond rating.

Benjamin Barnes, secretary of the Office of Policy and
Management, said Monday that Connecticut is “relatively
well-protected” because the state does not use certain federally
backed bonds to pay for capital improvements. It also does not rely
as much on federal funds as other states.

Barnes said there’s concern for the future, however, especially
if the federal government makes cuts in aid to states for Medicaid.

Malloy said that’s why it’s important to show the rating agencies
that Connecticut is taking steps to reduce future employee costs,
saying he hopes the labor concessions agreement will soon be
ratified.

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