Press Releases

05/23/2022

Governor Lamont Broadcasts Connecticut Receives Improved Credit score Score Outlook From S&P

(HARTFORD, CT) – Governor Ned Lamont at this time introduced that he has acquired notification that the credit standing company Normal & Poor’s (S&P) is elevating Connecticut’s common obligation bond outlook from steady to constructive.

Governor Lamont mentioned, “Constructing on final yr’s credit standing enhance, this improved outlook additional demonstrates Connecticut is on strong monetary footing. This progress is the direct results of historic funds to our unfunded liabilities, a document wet day fund, and good investments in the way forward for our state. Monetary analysts proceed to acknowledge that we’ve got ended the proverbial apply of kicking the can down the highway to future generations, and we’ve got actively taken steps to place our fiscal home so as. Connecticut residents will profit from this improved outlook within the type of lowered borrowing prices, and the sign that this sends to companies that our state is a spot to develop and make investments. Whereas we should always have fun our successes, we should hold a cautious eye on the long run. This isn’t the time for extreme and unstainable spending, slightly it’s a additional indicator that we should proceed to make affordable and accountable investments that present for our kids, develop our financial system, and enhance the lives of everybody who calls Connecticut dwelling.”

Workplace of Coverage and Administration Secretary Jeffrey Beckham mentioned, “In conferences with S&P following the enactment of the fiscal yr 2023 funds revision, the message from their crew was clear – Connecticut is on the proper path with each a large wet day fund and making extra funds on our unfunded liabilities. Buyers need us to proceed to take each of those points significantly, and if we do, we can be rewarded with lowered borrowing prices.”

In its discover to buyers that was launched at this time, S&P mentioned, “We imagine Connecticut has not too long ago demonstrated a dedication to restoring funds reserves in periods of financial and income progress that might insulate its funds from recessionary headwinds. State officers estimate that Connecticut will yield common fund surpluses on the finish of fiscal years 2022 and 2023 and develop the projected biennium-end BRF stability to $3.31 billion, or a robust 15% of fiscal 2023 common fund appropriations (together with mid-biennium funds changes) for the third consecutive fiscal yr. Deposits of surplus revenues had met or exceeded the 15% statutory reserve cap within the BRF on the finish of fiscal years 2020 and 2021. In confluence with the state’s excessive reserves, that state has additionally not too long ago sustained sturdy money balances.”

In 2021, Moody’s, Normal & Poor’s, Fitch, and Kroll upgraded Connecticut’s common obligation bond scores.

Twitter: @GovNedLamont

Fb: Workplace of Governor Ned Lamont