Fitch downgrades Connecticut bond rating

Fitch downgrades Connecticut bond rating
Tuesday, June 8, 2010
Deficit problems are affecting states as well as the federal government.
- By John March
World markets have been increasingly concerned about sovereign debt woes confronting several governments in Europe, and even in the United States. However, federal deficits aren't the only potential ticking time bomb when it comes to financial markets - a number of states are confronting their own substantial deficits as well.

For example, California's budget woes have been well-documented in the national media for months. The state has been suffering from a multibillion dollar budget deficit, and lawmakers have remained divided on ways to resolve the problem.

More recently, Fitch Ratings announced that it had downgraded Connecticut's GO bond rating from AA+ to AA. Fitch added that its rating outlook has been revised to stable from negative.

The downgrade was said to be due to what was called "the state's reduced financial flexibility, illustrated by its reliance on sizeable debt issuances during the current biennium."

Fitch also noted that Connecticut is the nation's wealthiest state by per capita personal income, and that "significant revenue declines" were among the reasons the state's budget reserves have been on the decline.


John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.

If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.