Standard & Poor's Ratings Services said it revised its outlook to negative from stable and affirmed its AA-minus rating on Hartford, Conn,'s general obligation bonds.
It also assigned a AA-minus rating to the city's series 2014B GO bonds and an SP-1-plus short-term rating to the GO bond anticipation notes (BANs).
"The outlook revision is due to the city's diminished flexibility following a sizable general fund drawdown projected for fiscal 2014, and significant budget gaps in its long-term projection," said Standard & Poor's credit analyst Hilary Sutton.
Proceeds will fund various projects, as well as take out the city's $56 million BAN that was sold to Banc of America Preferred Funding Corp. in a direct purchase transaction in April 2014.
The bonds and BANs are backed by the city's full faith and credit pledge.
