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Wall Street Sends a Warning Shot: S&P Drops Connecticut’s Bond Rating

April 16, 2018 By Staff
Wall Street Sends a Warning Shot: S&P Drops Connecticut’s Bond Rating

S&P Global dropped Connecticut's general obligation bond rating to an 'A' from an 'A-plus' on Friday.

Connecticut received another warning sign from Wall Street on Friday, as S&P Global Ratings – one of the three major credit-rating agencies on Wall Street, dropped the state’s general obligation (GO) debt rating from A-plus to A.

Reuters reported:

S&P Global Ratings on Friday lowered Connecticut’s roughly $18.5 billion of general obligation debt outstanding to A from A-plus, citing concerns about the state’s increased debt ratio.

The New England state is one of the wealthiest in the country, but its credit rating is among the lowest due to budget problems, underfunded pensions, high debt levels and a dim economic outlook.

Connecticut is not exactly a friend of S&P as of late. Reclaim Connecticut noted in July that S&P dropped Hartford’s GO bond rating from BB to BBB-, known as a “junk” rating.

Hartford’s standing has improved as of late, though, mostly because the state has promised to bail out the city of Hartford.