Moody’s Downgrades State’s Rating

Moody’s Investors Services has downgraded Connecticut’s  general obligation bonds from the Aa2 rating it has held for 21 months to Aa3.  Budget chief Ben  Barnes lashed back  — saying Moody’s took the action to detract attention from what he called the rating’s services “historic lack of credibility.”

Barnes called Moody’s “wrong in its analysis of the state’s finances and wrong to change Connecticut’s credit rating.”  Barnes says things have gotten better since April of 2010,  when the Aa 2 rating was issued.  And he points out that both Standard & Poor’s and Fitch rate Connecticut debt as AA,  the equivalent of Moody’s Aa2.

Moody’s attributes the downgrade to the state’s high fixed costs on existing debt,  and to benefits for retirees as a portion of the state budget.   It says the state’s pension ratios are among the lowest in the country, and says prospects for replenishing the rainy day fund are slim, near-term.

Moody’s does say the state’s budget outlook is stable,  and predicts that revenue trends will improve as the state moves out of the recession,  and the state switches to “Generally Accepted Accounting Principles.”

The rating affects $14.6 billion in outstanding state debt.

(Click here to see the Moody’s Report)

Comments

One Comment

  1. Libdumb says:

    And your leaders will want you to pay more taxes to pay for the loans they make to deficit spend. Unreal

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Connecticut

Ski Card
WTIC Holiday Stores 2016

Listen Live