Moody’s Investors Service Monday placed credits ratings for 26 cities in towns in Connecticut under review due to the state’s continuing budget stalemate.
Another 25 municipalities were assigned negative outlooks for the same reason.
In a news release, Moody’s said the changes, which mean cities and towns may end up paying additional interest when they borrow money, were necessary given the uncertainty about municipal aid from the state.
“The current budget impasse highlights the ongoing vulnerability of funding that the State of Connecticut provides to its local governments,” Moody’s wrote.
Credit ratings for the following cities and towns are under review: Ashford, Bolton, Bridgeport, Colchester, Coventry, East Lyme, Ellington, Enfield, Groton, Hamden, Ledyard, Mansfield, Marlborough, New Haven, Scotland, Shelton, South Windsor, Sprague, Stafford, Stratford, Thompson, Torrington, Watertown, West Haven, Wolcott and Woodstock.
The following cities and towns were assigned a negative outlook: Berlin, Bethany, Canton, Cheshire, Clinton, Columbia, Hartland, Lisbon, Montville, New Fairfield, New Hartford, New Milford, North Branford, Oxford, Plainfield, Plainville, Portland, Salem, Somers, Sterling, Thomaston, Wallingford, West Hartford, Wethersfield, Willington and Windham.
“These actions by Moody’s will have a devastating impact on nearly 60 communities across the state — subjecting each of them to a credit downgrade that will increase their borrowing costs, potentially explode their property tax rates and limit their ability to fund necessary municipal projects both in the short-term and long-term,” said Joe DeLong, executive director of the Connecticut Conference of Municipalities. “Sadly this could have all been avoided.”
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