505 0 obj +/- (Fitch Ratings, Kroll, S&P Global Ratings) 501 0 obj Finally, the credit analyst compiles a municipal credit report which discusses rating and the key analytical factors. R81 QA.n}-RXN|%j0Mk49 "Cl6q %}CO
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G^C\Lp$et9lu K8q$R{4]OV?mzP9}Gob !6zTI;ldr xjz:vInD,k_uTauO{XPZLmw_^`2\+kv. Fitch Ratings
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blnC$+H\ncsbfjpwA3agB -l295`kqjP!RV!K%/muS8q|lsl4GYDNP4>ozTuznHv[ 1,2,3 (Moody's), Bonds rated A have strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than bonds in higher rated categories. Anything below triple B is commonly known as a "junk bond." It measures the probability of the timely repayment of principal and interest of a bond. endstream 1 0 obj
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Evaluation of historical and current economic factors, Assessing the quality of life in the given area, Economic feasibility and need for project, Length of bonds' maturity, short-term debt financing, Pledged security and other bondholder protections, Futuristic outlook: capital improvement plan, Sufficient resources accumulated to meet unforeseen contingencies and liquidity requirements, On-going operations are financed with recurring revenues, Ability to meet expenditures within economic base, Organization of government and management, Clear delineation of financial and budgetary responsibilities, Portfolio composition-credit risk, diversification, and market risk, Leverage-increase of assets to enhance yield, Liquidity Management-portfolio maturity profile that matches cash flow. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or unreliable over any length of time. << /Names 689 0 R /OpenAction 727 0 R /Outlines 650 0 R /PageMode /UseOutlines /Pages 649 0 R /Type /Catalog >> 2016 CT.gov | Connecticut's Official State Website, regular Who are the credit rating agencies? << /Filter /FlateDecode /S 621 /O 698 /Length 532 >> 1,2,3 (Moody's), Expanded Analytical Topics - Investment Policies and Practices, endobj stream Currently, the following rating agencies rate Connecticut's general obligation bonds, notes, lease-purchase revenue bonds and commercial paper programs: A credit rating is an independent assessment of the creditworthiness of a bond (note or any security of indebtedness) by a credit rating agency.
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font size, Independent Registered Municipal Advisor ("IRMA") Statement, Statement Regarding Underwriters' Disclosures Pursuant to Rule G-17 of the Municipal Securities Rulemaking Board, latest audited and unaudited financial statements, the latest budget information, including economic assumptions and trends, the bond counsel opinion addressing the authority and tax-exempt status of the bond issuance, all legal documents relating to the security for the bonds; and. (MORE INFO). Iks%43 C?X Vkn4-{>'sVn V 5 0 obj +/- (Fitch Ratings, Kroll, S&P Global Ratings) endobj Issuer's capacity to pay interest and principal is extremely strong. << /Contents 506 0 R /MediaBox [ 0 0 595.276 841.89 ] /Parent 626 0 R /Resources 728 0 R /Type /Page >> % They carry the smallest degree of investment risk. It seems that JavaScript is not working in your browser. Important Postal Service address directive: Use - Office of the State Treasurer, 165 Capitol Ave., Hartford, CT 06106 - Do not use 55 Elm St. What is a credit rating? 504 0 obj 503 0 obj 3 !1AQa"q2B#$Rb34rC%Scs5&DTdEt6UeuF'Vfv7GWgw 5 !1AQaq"2B#R3$brCScs4%&5DTdEU6teuFVfv'7GWgw ? It could be because it is not supported, or that JavaScript is intentionally disabled. Bonds rated AA are judged to be of high quality by all standards. Cooling centers are open statewide. tE$ogNPu'-ZzkM->5{= Mt h% Jp{EdF>3n=:?Wlo{Oy%m(U0uf{,u.wRh%^8vtVr;mR'I$$ICIo]G92[[.hy}y8@g,[s$TE$YS, u^=Kn 5 $w(n7JW Wf)5n{ meU6gu.Y b>? endobj The credit rating symbols (long-term) are generally assigned with "triple A" as the highest and "triple B" (or Baa) as the lowest in investment grade (See below for definition of rating grades). ? How are bonds rated? +/- (Fitch Ratings, Kroll, S&P Global Ratings) These bonds lack outstanding investment characteristics and have speculative characteristics as well. endobj
They are neither highly protected nor poorly secured. Optional relative standing within a rating category: The credit analyst then presents credit for "sign-off" with the senior analyst and makes a recommendation for rating. Some of the features on CT.gov will not function properly with out javascript enabled. <> <> endobj The rating request is usually done a few weeks before the issuance of the bonds to allow time for the rating agencies to perform their review and analysis. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 720 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Kroll Bond Rating Agency endobj 7h.HbK8U%-i=?jz8M*Xi&oZvVL)h6#7~\bRM=Ina'Do0us$}JzZk2o*+qKFbj MnN3yz?RoF00}@,N?@[ ,t3cbE]EzYO^R-$n,: D xcbd`g`b``8 "9A$c#d+A$)"k@St]$@} R ``b6q$#w(9(H0J@ r 506 0 obj
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1,2,3 (Moody's), Bonds rated (BBB) are considered medium grade obligations. %PDF-1.5 Optional relative standing within a rating category: 2 0 obj 3 0 obj Z] .F8%#k_^Wj|e jY\Qk5M kR]:V=a2u97NS,Yu5_ZC.ce?oASm* Cp,}e]_U_R+lfuClh>fqm{=Kk K^wjHE\8dH%*{7 NTaV ' endstream endstream endobj They differ from the highest rated (AAA) bonds only in a small degree. To find the nearest available locations, visit 211ct.org or call 2-1-1. The credit analyst prepares a credit presentation which discusses key analytical factors. Optional relative standing within a rating category: any other documents that may pertain to the bond issuance as requested by the rating agencies. The State provides documentation to the rating agencies for that review including: The credit rating process often includes meetings between the credit analyst team and the state on the state's credit worthiness. Bonds rated AAA have the highest ratings assigned by rating agencies. 502 0 obj x H H Adobe_CM Adobe d The credit analyst makes a presentation before a rating committee comprised of senior analysts. 6 0 obj Moody's Investors Service xWKs6Wh:F;UEQSqn ( @lA=js9+$@_Auis+4 IUqN'V -rda3c.sSQ^oAz zQcXOBiVMQ`PX@ OQuZD Fh <. S&P Global Ratings. % JDO;9Y%+'/*C+}fbk:_d?M^o endobj << /Linearized 1 /L 579712 /H [ 2652 620 ] /O 505 /E 113965 /N 59 /T 576434 >> << /Type /XRef /Length 99 /Filter /FlateDecode /DecodeParms << /Columns 5 /Predictor 12 >> /W [ 1 3 1 ] /Index [ 501 283 ] /Info 139 0 R /Root 503 0 R /Size 784 /Prev 576435 /ID [<73123714436532d23b498bca7b014c77><3cb7912650dd40d6b7a733810b4b67a0>] >> endobj stream Generally, a higher credit rating would lead to a more favorable effect on the marketability of a bond. the rating is released to the issuer, then to a wire service, followed by a publication of the full credit report.