Rell Won’t Run Again

Connecticut Gov. M. Jodi Rell last week announced that she would not seek re-election in 2010.

The announcement came as the state issued $1.08 billion of tax-exempt general obligation notes to help close an estimated $624 million gap for the current fiscal year. Citi priced the deal Thursday after a retail order period Tuesday, with maturities from 2012 to 2016. Notes due in 2016 featured a 5% coupon and a yield of 2.64%. The state also sold $165.7 million of bonds maturing in 2012 through 2014. Bonds due in 2014 had a 5% coupon and a 2% yield.

Moody’s Investors Service and Fitch Ratings recently revised their outlooks on the state to negative from stable, with both agencies citing the use of one-shots to help balance the budget. The fiscal 2010 budget became law in September without Rell’s signature as the Republican governor clashed with the Democratic-led General Assembly over the spending plan. Fiscal 2010 began July 1.

Rell said she would continue to work on the state’s fiscal issues for the remainder of her term and thanked the residents of Connecticut.

“I need their continued support and understanding and their prayers for the next 14 months,” Rell said during a press conference. “I still have a lot of governing to do — a lot of difficult issues to face in these tough economic times.”

The state has $12 billion of outstanding GOs. Standard & Poor’s and Fitch rate the credit AA while Moody’s rates it Aa3. Standard & Poor’s outlook is stable.

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