The Hartford Courant reports the agency lowered Hartford’s rating on Tuesday from B- to CC. Standard & Poor’s has issued a stark report saying, “a default, a distressed exchange, or redemption appears to be a virtual certainty.”
The city has about $545 million in outstanding general obligation debt. Mayor Luke Bronin says Hartford needs at least $40 million in additional assistance from the state legislature to avoid bankruptcy.
Hartford’s largest bond insurer, Assured Guaranty, has offered to refinance the city’s debt. Bronin says he will not take a plan that would burden the city in the future.
Bronin needs permission from Gov. Dannel Malloy to seek Chapter 9 protection.
Information from: Hartford Courant, http://www.courant.com
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