Connecticut Officials Celebrate State's Stable Credit Rating Amid Pandemic
Connecticut Treasurer Shawn Wooden said the state is ending the year with a stable credit rating, despite the economic downturn caused by the pandemic.
Wooden said Connecticut’s good credit rating has enabled the state to borrow $800 million in general obligation bonds at a record low interest rate of 1.8 percent. He said investors have also oversubscribed to the UConn 2000 Fund for the first time in 20 years.
“These bond sale results demonstrate how investor confidence in Connecticut not only remains strong but is in fact improving," Wooden said. "Certainly our $3 billion budget reserve fund and other fiscal controls are key contributing factors to these results.”
The state Bond Commission has allocated the borrowed money to fund several projects including local school construction, I-95 highway safety improvements and municipal economic development grants.
Governor Ned Lamont chairs the commission.
He said it’s a good time for Connecticut to borrow the money because the state has a good credit rating and interest rates are low.
“We are going to be borrowing at the lowest rates this state has seen since World War II — 1.8 percent or so. That’s a very long time. That’s because interest rates are at a historical low. That’s because Connecticut has been handling its finances reasonably well,” Lamont said.
Connecticut’s credit rating has remained stable despite the pandemic.
Eleven states including New York have had their credit ratings downgraded to negative this year by the major credit agencies.