State Budget Outlook Strong, Credit Rating Upgraded

May 24, 2023

Sound budgeting by the legislature and governor has kept state finances strong and led to a recent credit rating upgrade.

Just last week the governor's budget office estimated that the state budget will end the current 2023 fiscal year on June 30 with a $1.6 billion surplus and a $6.2 billion balance in the "Rainy Day" reserve fund.

In addition, Connecticut just received an upgraded credit rating from the Kroll Bond Rating Agency, which means that our General Obligation bond credit rating was upgraded from AA (stable) to AA+ (stable), just one step below the highest credit rating possible.

Credit Rating

In its notice to investors, Kroll wrote, “The rating upgrade for the State of Connecticut’s General Obligation Bonds reflects the State’s strong credit profile and significant and continuing progress in improving its financial position over the last six fiscal years."

This is all good news for Connecticut's economy, and a testament to the success of the bipartisan fiscal guardrails and budgeting disciplines we have in place.

Last year, Standard & Poor’s (S&P) upgraded Connecticut's credit rating from A+ (positive) to AA- (stable). In 2021, all four major credit rating agencies upgraded Connecticut's credit rating, including Moody's. S&P, Fitch and Kroll.

Our strong budget status combined with a continuing credit upgrade allows us to maintain a strong financial standing and strengthens our appeal to those looking to make investments here.