NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) has assigned a long-term rating of AA with a stable outlook to the State of Connecticut’s $500 million General Obligation Bonds 2014 Series F,G, & H. In addition, KBRA affirms the long-term rating of AA with a stable outlook on the State’s outstanding General Obligation Bonds, excluding Bonds backed by a letter of credit or liquidity facility. After issuance of these Bonds, the State’s outstanding general obligation debt will total approximately $16.4 billion.
The rating is based on KBRA’s U.S. State General Obligation Rating Methodology published on March 28, 2012. The Bonds are General Obligations of the State and are secured by Connecticut’s full faith and credit pledge. Proceeds from the 2014 Series F bonds will be used to fund various capital projects and purposes of the State, including local school construction projects. The 2014 Series G bonds are identified as “Green Bonds” and will finance a portion of various high priority clean water projects across the State for design, construction and improvements to wastewater treatment plants and related energy efficiency upgrades designed to reduce water pollution in the State. Proceeds from the 2014 Series H bonds will be used to refund a portion of outstanding State general obligation debt.
KBRA views the State’s ongoing lag in economic recovery and its impact on budgetary operations as continuing to pressure the fiscal operations of the State. The slow pace of the economic recovery, compared to the region and the nation, has created increased demand for services while some economically sensitive revenue collections, including income tax and sales tax collections, continue to be below expectations. KBRA will continue to monitor the State’s consensus revenue process and its ability to accurately project estimates of income tax revenues related to the realization of capital gains and other economically sensitive revenues. KBRA expects that the State will continue to actively monitor its budget projections and act to increase revenues or reduce expenditures in order to maintain budget balance.
Please use the following links to view KBRA’s full report and tear-sheet on the State:
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).