GOVERNOR LAMONT AND TREASURER RUSSELL ANNOUNCE CONNECTICUT RECEIVES CREDIT RATING INCREASES FROM MOODY’S AND FITCH

09/10/2025

GOVERNOR LAMONT AND TREASURER RUSSELL ANNOUNCE CONNECTICUT RECEIVES CREDIT RATING INCREASES FROM MOODY'S AND FITCH

These Are the Seventh and Eighth Increases Connecticut Has Received Since the Start of the Lamont Administration

(HARTFORD, CT) - Governor Ned Lamont and Treasurer Erick Russell today announced that they have received notification from Moody's and Fitch informing them that both rating agencies are upgrading Connecticut's bond ratings.

Moody's is upgrading Connecticut from Aa3 to Aa2. Fitch is upgrading the state from AA- to AA. These upgrades mark the seventh and eighth credit rating increases during the Lamont administration. Prior to the start of the administration, the most recent General Obligation bond rating upgrade the state received was in 2001.

"Let there be no doubt that Connecticut is back," Governor Lamont said. "By the end of 2025, the state will have made an additional $10 billion in pension payments since I took office. This is the result of sound fiscal management, a growing trust in Connecticut by businesses and residents, which is reflected in our improved economic statistics, and a historic run in the stock market. The result is additional savings for taxpayers and ongoing historic investments in education, housing, and our social services safety nets. If we continue the progress we have made, the state's pension debt, largely accumulated from 1939 to 2011, will be fully funded within a generation. This is the legacy we are leaving our children and grandchildren, and one we should all be proud to reach."

"Ratings agencies continue to validate Connecticut's creditworthiness, disciplined budgeting, and the progress we've made to reduce liabilities and fixed costs," Treasurer Russell said. "These ratings upgrades will result in even greater demand for our bonds, creating both immediate and long-term savings for taxpayers, while freeing up resources for the state to make critical investments in programs and people. Connecticut remains in a strong financial position to fortify our residents, our pensioners, and our investors against the current economic volatility emanating from Washington."

In their notice to investors announcing the upgrade, both agencies credited the improvements to recent advances in Connecticut's budgetary practices.

"The rating upgrade to Aa2 is driven by the state's well-established strong governances practices that have led to increased budgetary reserves and consistent pension contributions that have begun moderating the state's very high unfunded pension liabilities," Moody's said. "With continued adherence to these policies, the state is expected to maintain solid reserve levels and further reduce leverage metrics."

Moody's added, "Connecticut's stable outlook reflects the expectation that the state will remain committed to the fiscal guardrails in place, ensuring continued structural balance, healthy rainy day reserves and aggressive pay-down of pension liabilities."

"The upgrade reflects Fitch's expectation that Connecticut will maintain policies which foster structural balance while revenues grow in line with national inflation and expenditures grow consistent with statutory budget guardrails," Fitch said in their notice.

"During recent meetings with credit rating agencies, they noted the positive change in Connecticut's financial outlook, paying down long-term debt, saving for the future, and a growing economy," Office of Policy and Management Secretary Jeffrey Beckham said. "They also noted that we still have more work to go - we have about $35 billion in legacy debt to eliminate. It is essential that we continue to pay down our debts while continuing to provide access to quality education and housing, keeping our residents safe, and making critical investments in the future."

During the week of September 22, 2025, the Office of the Treasurer plans to offer $1.815 billion of General Obligation Bonds in three series: $800 million 2025 Series C tax-exempt bonds and $300 million 2025 Series B taxable bonds to fund new projects (municipalities and nonprofits, grants for urban action, community investment fund, school construction, agricultural land preservation, capital improvements and general state purpose), plus approximately $715 million of 2025 Series D refunding bonds to refinance previously issued bonds to lower interest rates and capture debt service savings.

For more information on the State of Connecticut's bonding programs, visit buyCTbonds.gov.

Contact: Brett Cody
[email protected] | (959) 529-2468