Governor Announces State Credit Rating Increased; “Connecticut is getting its mojo back”

Governor Ned Lamont today announced that his administration has received notification from credit rating agency Standard & Poor’s (S&P) that it is increasing Connecticut’s general obligation bond credit rating from A+ (positive) to AA- (stable). This credit rating increase follows increases in 2021 by several other agencies, including Moody’s, S&P, Fitch, and Kroll.

Prior to Governor Lamont taking office, Connecticut had not experienced an increase in its credit rating since February 2001.

Governor Lamont said, “Connecticut taxpayers should celebrate today’s news. This credit rating increase will mean lower costs for critical projects that move our state forward. It is a signal to the businesses and residents that our state is on the right financial path, that we have shown a commitment to putting our fiscal house in order, and we are continuing to make significant progress to address our pension and other postemployment benefit liabilities. S&P recognizes the progress that has been made and that Connecticut is getting its mojo back.”

Secretary Beckham said, “As we develop next year’s budget, this credit rating increase sends strong signals for how we should proceed in the future. The budget we release in February will include an extension of the bond covenants that S&P stated as a key reason for our upgrade. If we are going to continue the positive progress made under this administration, those bond covenants and associated benefits must be a part of the final budget bill.”

In its notice to investors that was released today, S&P said, “The upgrade on the state’s GO debt reflects our view of Connecticut’s sustained positive financial results and building of high reserve levels during a recent period of economic and revenue growth, while also demonstrating its commitment to structural budget balance and curbing future growth of the state’s very high debt, pension, and other postemployment benefit (OPEB) liabilities, which we expect will continue in future biennial budgets. Connecticut’s overall credit improvement is also underscored by the executive branch’s announcement and intent to extend statutory financial controls in the next biennial budget proposal, which supports our view that the state remains more firmly committed to these provisions for the foreseeable future.”