HARTFORD, Conn. (AP) — A ratings agency has maintained Connecticut’s bond rating as “negative,” saying the state’s budget relied on one-time fixes and the state’s economic recovery is inadequate.
The analysis by Fitch Ratings released Tuesday said Connecticut’s key finance sector continues to weaken and the state’s economic recovery from the recession has been slow and uneven.
Fitch said budget adjustments approved by the General Assembly relied on one-time items such as shifting $221 million from last year’s surplus into the budget that took effect July 1.
A spokesman for the Malloy administration’s budget office said agencies reaffirmed Connecticut’s debt ratings. And he says $400 million deposited in the rainy day fund and fully funding pension obligations will help increase the ratings.
The ratings agency also called Connecticut’s personal income tax collections volatile, making revenue forecasts difficult.
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