Press Release|Public Finance
KBRA Assigns AAA Rating to State of Connecticut Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 2026 Series A; Affirms Rating for Parity Bonds
15 May 2026 | New York
KBRA assigns a long-term rating of AAA to the State of Connecticut Special Tax Obligation Refunding Bonds, Transportation Infrastructure Purposes, 2026 Series A and affirms the AAA long-term rating for outstanding Special Tax Obligation Bonds, Transportation Infrastructure Purposes. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Diverse pledged revenue sources provide a stable source of payment and solid coverage of debt service requirements.
- Legal protections are favorable including a covenant to maintain at least 2.0x annual debt service coverage.
Credit Challenges
- The State’s rate of economic growth has been slower than that of the U.S. and New England region for more than a decade although wealth levels are favorable.
- Transportation needs are substantial and place pressure upon the State’s ability to fund them over the longer term.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- An economic downturn that leads to a sustained decline in coverage and budgetary pressure on the State.
To access ratings and relevant documents, click here.