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Hartford’s credit rating received a significant boost this week as S&P Global Ratings upgraded the city’s long-term issuer credit rating two notches to A- from BBB, citing sustained improvements in its financial position.
The agency also raised its long-term rating on the Hartford Stadium Authority’s lease revenue bonds to BBB+ from BBB-. The outlook for both is stable.
S&P said Hartford has strengthened reserves and produced consistently positive financial results in recent years, despite ongoing economic and taxing constraints. Analysts credited city officials’ adherence to financial reporting standards and long-term planning requirements imposed under state oversight, which the agency said has helped maintain structural balance.
An upgraded credit rating lowers a city’s borrowing costs, improves access to capital markets and signals to investors that its financial management and outlook have materially improved.
City leaders said the move validates progress Hartford has made since its 2017 fiscal crisis, when the city narrowly avoided bankruptcy and the state stepped in to assume roughly $550 million in general-obligation debt.
“This upgrade is a clear recognition of Hartford’s commitment to responsible financial stewardship,” City Treasurer Carmen I. Sierra said in a statement. “Stronger credit means lower borrowing costs, and that translates directly into more resources for the priorities that matter most to our residents.”
Mayor Arunan Arulampalam called the rating action further evidence of the city’s financial recovery.
“A better credit rating is more than just a number, it means we can invest more in our schools, infrastructure, and neighborhoods — priorities that directly improve the quality of life for every resident,” Arulampalam said.
In its report, S&P said the upgrade is “closely tied to management’s continued adherence to financial reporting and long-term planning requirements that help preserve structural balance.”
The agency noted that Hartford continues to face elevated social risks tied to a high property-tax rate, weak household incomes and demographic challenges that limit economic growth potential. Heavy reliance on state aid and limited local revenue-raising capacity also pose ongoing pressures, particularly within the school system.
Even so, S&P said Hartford has benefited from stronger state oversight and financial support, which bolsters overall governance.
The stable outlook reflects expectations that the city will maintain balanced operations and continue to improve reserves despite pension liabilities and school-budget challenges.
A downgrade is possible if Hartford draws down reserves without a credible plan to rebuild them, S&P said.
Further upgrades are considered unlikely in the near term, S&P added, but could occur if the city materially strengthens reserves, closes structural gaps in the school budget, and shows measurable improvements in local economic indicators.