Great News for CT's Fiscal Outlook!April 9, 2021
I am excited to share with you some great news about Connecticut's fiscal outlook!
For the first time in over 20 years, Moody's Investor Services increased Connecticut's credit rating from A1 to Aa3. The ratings reflect a state’s capacity to meet its financial commitments and incorporates factors such as the strength of a state’s economy, current business conditions, and the future outlook for the state. Aa3 is the fourth highest rating a state can receive.
Moody’s cited Connecticut’s "accumulation of significant budgetary reserves" and better than expected financial performance during the pandemic as the main reasons for its decision to upgrade our state’s rating.
This boost in the state's credit rating allows the State to borrow money at a reduced cost for construction projects and infrastructure updates, which will strengthen our economic recovery and save taxpayers money in the long-term. This new credit rating also allows our State agencies to maintain stability in providing critical social services.
The benefits of our smart, fiscally responsible policies are paying off. We are emerging as a national financial leader. While more work needs to be done to ensure Connecticut's economy continues to grow, this is certainly a welcome development.