S&P Downgrades Connecticut’s Credit Rating Again As Democrat Mismanagement Continues

Failed Democrat Governor Dan Malloy’s mismanagement of Connecticut continues to drag the state further into economic decline and fiscal chaos.

The RGA writes:

Failed Democrat Governor Dan Malloy’s mismanagement of Connecticut continues to drag the state further into economic decline and fiscal chaos. Just this weekend, S&P Global Ratings announced it would downgrade Connecticut’s credit rating, citing its “declining population and an economic recovery from the last recession that has lagged behind the region and the nation.”

In 2017, all three major credit agencies, S&P, Moody’s, and Fitch, downgraded Connecticut’s bond rating. Unfortunately, S&P’s newest downgrade shows this trend isn’t changing anytime soon as analysts claim that “Connecticut’s debt burden is not likely to shrink in the near term.”

As Connecticut loses its economic and fiscal standing, falling further into decline thanks to Malloy’s failed leadership, Democrat gubernatorial candidates Ned Lamont, Susan Bysiewicz, Jonathan Harris, and Luke Bronin will be held accountable by voters for enabling and defending their party’s mismanagement of the state under Malloy.

The CT Mirror has more:

The potential for Connecticut’s hefty debt burden to remain a drain on state finances for years to come prompted one major Wall Street rating agency Friday to downgrade the state’s credit rating.

And while S&P Global Ratings cited the recent state commitment to pay down Hartford’s general obligation debt, it labeled that a “relatively small” burden for Connecticut compared with the state’s resources. But when coupled with several larger factors, including an already high level of bonded state debt and a need for more borrowing to fix an aging transportation system, Connecticut’s overall fiscal indebtedness remains a concern.

A weaker bond rating could lead to higher interest costs as Connecticut seeks to finance capital projects in the future.

‘While we view Hartford as a unique situation and the city’s debt as a relatively small in relation to overall state resources, the assumption of debt, combined with other trends, leads us to conclude that Connecticut’s debt burden is not likely to shrink in the near term,’ said S&P Global Ratings credit analyst David Hitchcock. We believe that other distressed cities might apply for state assistance (and) additional transportation debt remains a possibility if the legislature, increases transportation taxes.

Connecticut ended the last fiscal year with nearly $24 billion in taxpayer-backed bonded debt, and has one of the highest per capita debt ratios in the nation…

S & P, which lowered the state’s rating one notch, from A+ to A,  also noted that Connecticut continues to struggle with a declining population and an economic recovery from the last recession that has lagged behind the region and the nation.

‘Considering the state went four months without a budget [in 2017] and has yet to address the current year deficit, it should come as no surprise Wall Street is taking note,’ Meg Green, a spokeswoman for Gov. Dannel P. Malloy’s budget office, said Friday. ‘ … It’s important to note that Connecticut’s budget situation and historic underfunding of long term liabilities, not this recent action, are driving the state’s rating.’

Previously: 

12 hours ago

California estimated to have sent $10B in fraudulent COVID-19 unemployment claims, including foreign crime organizations

California may have sent out $10 billion in fraudulent unemployment benefits, with some of the funds even going to organized crime organizations in China and Russia.

6 days, 8 hours ago

Wyoming will fight any Biden regulations on energy

Wyoming will push back against any federal regulations brought by the Biden administration that hinder development of fossil fuels

6 days, 8 hours ago

Gov. Abbott: 'Let's make alcohol-to-go an official law in Texas'

Late Tuesday night, Texas Governor Gregg Abbott tweeted "Let's make alcohol-to-go an official law in Texas."

6 days, 8 hours ago

Biden administration’s goal will be to impose more control over America’s culture and economy

Much of today’s Democratic Party has an agenda that undermines America’s guiding principles

1 week ago

Murphy’s soccer team got $147K forgivable loan under federal COVID relief for struggling businesses

The professional women’s soccer team that Gov. Phil Murphy owns was approved for nearly $150,000 in a forgivable federal loan last year from the coronavirus relief initiative

1 week, 1 day ago

‘It’s all fallen apart’: Newsom scrambles to save California — and his career

The Democrat leading the nation’s biggest state is facing a raging pandemic, vaccine distribution problems and a nascent recall drive.