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.