The Constitution State is bringing the largest negotiated deal to a supply starved market this week — although the state is faced with fiscal challenges, it hopes the big sale satisfies investors, during a time when munis are attractive but supply is scarce.
Connecticut, home to multiple rating downgrades, budget strife, high debt, and pension-funding controversy, expects to sell $617 million in fixed-rate GO bonds Tuesday and Wednesday.
The amount includes a $367 million refunding.
All four bond rating agencies last year downgraded Connecticut, whose budget was four months late.
Controversy simmers over Governor Dannel Malloy’s plan to push out teacher pension fund payments.
State Treasurer Denise Nappier says the move would violate bond covenants.
A state panel has called for an overhaul of fiscal practices in Connecticut, where financial disarray belies high per-capita wealth metrics.