Moody's: Hartford Default Likely
HARTFORD, CT — The city of Hartford is likely to default on its debt in a matter of weeks without additional concessions from the state of Connecticut, bondholders, and labor unions, Moody’s Investors Services says in a new report.
“Our analysis projects operating deficits of $60 million to $80 million per year through 2036,” Nicholas Lehman, an analyst at Moody’s said. “Fixed costs — including pension contributions, benefits and insurance, and debt service — are driving large projected operating deficits of approximately 11 percent of revenues.”
Hartford is looking to bondholders to restructure roughly $604 million in general obligation and lease debt. Options for restructuring include refinancing debt by issuing new refunding bonds with a maximum maturity of 30 years, instead of the previous cap of 20 years.
As well, the new bonds would be secured by a statutory lien on property taxes.
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