Connecticut Credit Rating Continues To Climb: Analysts

CONNECTICUT — The state's credit rating continues to climb.

Kroll Bond Rating Agency notified Connecticut officials that the credit rating agency is upgrading the State of Connecticut's General Obligation bond credit rating from AA (stable) to AA+ (stable), one step below the highest credit rating possible.

The credit rating upgrade follows an upgrade by Standard & Poor's in 2022 and four additional upgrades in 2021 by all four of the major credit rating agencies, including Moody’s, S&P, Fitch, and Kroll.

In its notice to investors that was released Thursday, Kroll wrote, "The rating upgrade for the State of Connecticut’s General Obligation Bonds reflects the State's strong credit profile and significant and continuing progress in improving its financial position over the last six fiscal years. Also recognized at the revised rating level is the recent February 2023 extension of certain statutory fiscal guardrails which KBRA believes position the State to maintain strong reserves and achieve further progress in addressing its large unfunded pension liabilities in the years ahead."

Gov. Ned Lamont forecast that the news from KBRA will result in reduced costs that will allow the state to "make critically needed investments in infrastructure, health and human services, education, economic development, and other key areas. This will also mean lower fixed costs in our budget, providing additional resources for essential services in future years."

State Treasurer Erick Russell called the news "a testament to the success of Connecticut’s fiscal guardrails and culture of budgetary discipline."