Preview of Coming Attractions: Connecticut Gets a Credit Down Grade

Signs of the times Connecticut downgraded by credit agency Fitch last week. Connecticut credit rating goes from AA+ to AA.

Connecticut is borrowing a $956 million  to close a budget.  In 2009 the state borrowed $948 million.

“The downgrade reflects the state’s reduced financial flexibility, illustrated by its reliance on sizable debt issuances during the current biennium to close operating gaps in the context of already high liabilities,” Fitch said.

It will be more expensive for the state government borrow money and further burdens cities, counties, towns and hamlets  to get state funding from Hartford.

Connecticut won’t be the only state that may receive a credit rating down grade. The US may also a credit down grade if the spending do not stop.

Economic Policy Journal

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s