Connecticut's credit rating has been upgraded again while the state budget is on track to post another surplus for the current fiscal year.

National credit rating agencies Fitch and Moody's both recently upgraded the state's bond credit rating to "positive." In addition, a $224.6 million budget surplus is estimated for fiscal year 2024 which ended June 30.

In their report Fitch stated: “The Outlook revision to Positive reflects Fitch’s view that Connecticut is likely to see medium-term revenue growth at or slightly above Fitch’s long-term expectations for national inflation, while the state maintains its renewed commitment to budgetary guardrails that constrain expenditure growth.”

Moody's noted: “The outlook revision to positive is driven by the state’s prudent financial policies that have led to increased budgetary reserves and consistent pension contributions that have begun moderating the state’s very high unfunded pension liabilities. With continued adherence to these policies, the state is expected to maintain solid reserve levels and further reduce leverage metrics.”

In addition to the projected budget surplus, the state's "Rainy Day" reserve fund is expected to grow to $4.6 billion. It is also estimated that an additional $1.8 billion will go toward reducing the state's long term pension obligations.

Maintaining a solid credit rating and a balanced budget is important for spurring Connecticut's economy and encouraging future growth. And, this good news is a direct result of the prudent fiscal budgeting between the legislature and governor.