Wednesday, September 27, 2017

DEFAULT LOOMS: Hartford Downgraded Further Into Junk Status

Two credit-ratings firms on Tuesday downgraded the city of Hartford further into junk status, citing an increased likelihood of default as early as November.

S&P Global Ratings knocked down Hartford’s rating by four notches to CC. Moody’s Investors Service lowered its rating for Connecticut’s capital city by two notches to Caa3.

The city faces a deficit approaching
$50 million. City officials have said Hartford could file for bankruptcy as early as November if the state doesn’t step in and help.

“The negative outlook reflects ongoing risks from the absence of a plan to restore the city’s financial health and uncertainty of state support given the ongoing budget impasse,” Moody’s said.

But the state of Connecticut has its own fiscal problems. State lawmakers failed to pass a budget before the start of the fiscal year in July to close a two-year budget hole of $3.5 billion. An executive order signed by Gov. Dannel Malloy, a Democrat, has funded state operations since then.


(via The Wall Street Journal)

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