Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

TexasTowelie

(117,261 posts)
Sat Oct 21, 2017, 06:34 AM Oct 2017

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.

Read more: http://www.ctnewsjunkie.com/archives/entry/moodys_hartford_default_likely_10_19_2017/

Latest Discussions»Region Forums»Connecticut»Moody's: Hartford Default...