One of the major ratings agencies has downgraded Connecticut’s general obligation bonds, making it more expensive for the state to borrow money. Fitch Ratings downgraded the state from A+ to AA-.
In its release explaining the downgrade, Fitch said the judgment was “based on reduced expectations for economic and revenue performance over the medium term and the deterioration in Fitch's assessment of the state’s through-the-cycle fiscal flexibility, which has suffered from the need to address chronic economic and fiscal challenges during a prolonged period of national economic expansion.”
Governor Dannel Malloy’s office said the downgrade was disappointing, but should be taken seriously in upcoming budget negotiations.
Republican Senate Leader Len Fasano called the news "devastating but not unexpected."
Fitch last downgraded the state in May of last year -- at the same time as S&P took a similar action.
Moody's Investors Service currently has a negative outlook on Connecticut.
State treasurer Denise Nappier has recently advocated for a new mechanism for repaying debt, as a way to achieve a more stable credit rating.
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