Bob Godfrey

The Kroll Bond Rating Agency upgraded its rating for Connecticut’s transportation infrastructure bonds last week from AA+ to AAA, its highest rating. 

The Special Transportation Fund (STF) was created in the wake of the Mianus River Bridge collapse. To ensure that we fund both construction and maintenance of our transportation system, the state earmarked the gas tax, motor vehicle fees and fines, and other petroleum products taxes to provide the money exclusively for this fund. Yes, this is a way to have users pay for their use of transportation infrastructure. The STF pays for Department of Transportation’s and similar agencies’ costs, but is mostly used to pay down bonds for roads, bridges, ports, and airports. 

So, it means the bond rating is important; the higher the rating, the less interest we pay on are borrowing for transportation projects.  

Our friend Connecticut Treasurer Erik Russell told reporter Hugh MacQuaid that the rating upgrade would make Connecticut’s planned transportation projects more cost-effective to undertake.  

“This is yet another positive outcome of our state’s strong bipartisan culture of fiscal responsibility.,” Russell said. “The budgetary reforms put in place have stabilized state finances and resulted in a flurry of credit ratings increases in recent years. Not only does this encourage international investment in our state, but it makes it more affordable for us to invest in ourselves as we continue to build the future we want."

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