Governor Lamont announces that Connecticut will receive a credit upgrade from S&P

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Governor Ned Lamont

11/21/2022

Governor Lamont announces that Connecticut will receive a credit upgrade from S&P

(HARTFORD, Connecticut) – Governor Ned Lamont announced today that his administration has been notified by rating agency Standard & Poor’s (S&P) that it is upgrading Connecticut’s overall bond rating to AA- (stable) from A+ (positive). This credit rating boost follows increases in 2021 from several other agencies, including Moody’s, S&P, Fitch, and Kroll.

Prior to Governor Lamont’s inauguration, Connecticut had not seen its credit rating improve since February 2001.

said Governor Lamont, “Connecticut taxpayers should celebrate today’s news. This increase in creditworthiness means lower costs for critical projects that move our state forward. It is a signal to businesses and residents that our state is on the right financial path, that we are committed to getting our wheelhouse in order, and that we continue to make significant progress in addressing our pension and other benefit obligations do after termination of employment. S&P recognizes the progress made and that Connecticut is getting its mojo back.”

said Secretary of State Beckham, “As we develop next year’s budget, this upgrade in credit rating sends strong signals for how we should proceed going forward. The budget that we release in February will include an extension of bond obligations, which S&P cited as the main reason for our upgrade. If we are to continue the positive progress made under this administration, these bond commitments and the benefits they bring must be part of the final draft budget.”

In its note to investors released today, S&P said“The upgrade to the state’s GO debt reflects our view of Connecticut’s continued positive financial results and strong reserve build-up during a recent period of economic and revenue growth, while demonstrating its commitment to structural fiscal balancing and curbing the state’s future growth.” very high liabilities from debt, pensions and other post-employment benefits (OPEB), which we expect to persist in future biennial budgets. Connecticut’s overall credit improvement is also underscored by the Executive Branch’s announcement and intent to expand statutory financial controls in the next biennial budget proposal, supporting our view that the state remains more committed to these provisions for the foreseeable future.”

Twitter: @GovNedLamont

Facebook: Office of Governor Ned Lamont


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