KBRA Assigns AA+ Rating to Various State of Connecticut General Obligation Bonds; Affirms Rating for Parity Bonds
For best results when printing this announcement, please click on link below: KBRA Assigns AA+ Rating to Various State of Connecticut General Obligation Bonds; Affirms Rating for Parity Bonds KBRA assigns a long-term rating of AA+ to the State of Connecticut: General Obligation Bonds (2026 Series C); General Obligation Refunding Bonds (2026 Series D); General Obligation Refunding Bonds (2026 Series E) (Forward Delivery); and, Taxable General Obligation Bonds (2026 Series B). KBRA additionally affirms the long-term rating of AA+ for the State's outstanding General Obligation Bonds. The rating Outlook is Stable. Key Credit Considerations The actions reflect the following key credit considerations: Credit Positives State is estimated to have completed FY 2026 with a BRF balance exceeding the statutory cap at 18% of GF appropriations and is positioned to direct surplus resources toward supplemental pension contributions for a seventh consecutive year. Strong financial management framework and enhanced statutory fiscal guardrails in place through at least FY 2028 position the State for strong operating results. Strong wealth levels with the highest per capita personal income level among
For best results when printing this announcement, please click on link below: KBRA Assigns AA+ Rating to Various State of Connecticut General Obligation Bonds; Affirms Rating for Parity Bonds KBRA assigns a long-term rating of AA+ to the State of Connecticut: General Obligation Bonds (2026 Series C); General Obligation Refunding Bonds (2026 Series D); General Obligation Refunding Bonds (2026 Series E) (Forward Delivery); and, Taxable General Obligation Bonds (2026 Series B). KBRA additionally affirms the long-term rating of AA+ for the State's outstanding General Obligation Bonds. The rating Outlook is Stable.
Key Credit Considerations The actions reflect the following key credit considerations: Credit Positives State is estimated to have completed FY 2026 with a BRF balance exceeding the statutory cap at 18% of GF appropriations and is positioned to direct surplus resources toward supplemental pension contributions for a seventh consecutive year. Strong financial management framework and enhanced statutory fiscal guardrails in place through at least FY 2028 position the State for strong operating results. Strong wealth levels with the highest per capita personal income level among all states as of 2025.
Credit Challenges Below average gross state product, population, and employment growth underscore structural economic/demographic challenges. S. average. However, the State borrows for many local purposes and the comparison on a combined state and local basis is more moderate.
Federal policy changes implemented in HR 1 will push responsibility for funding a larger share of certain social welfare programs to states over the next several years, which KBRA anticipates will pressure budgetary balance. Rating Sensitivities For Upgrade Significant improvement in the funded ratios for the State’s pension systems. For Downgrade Structural operating deficits in the GF. Further relaxation of the fiscal guardrails.
Sustained weakening in the State’s employment base and economic activity. S. State General Obligation Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here Information on the meaning of each rating category can be located here Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. S.
Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus.
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