What happens to a city government that spends more money than it actually possesses? Look no further than Hartford, Connecticut.
"Two credit-ratings firms on Tuesday downgraded the city of Hartford further into junk status, citing an increased likelihood of default as early as November.
S&P Global Ratings knocked down Hartford’s rating by four notches to CC. Moody’s Investors Service lowered its rating for Connecticut’s capital city by two notches to Caa3.
“The rating agency actions today reflect the reality we’ve been emphasizing for many months, which is that a truly sustainable solution for Hartford is going to require the participation of all stakeholders,” Hartford Mayor Luke Bronin said in a statement. “Our focus remains on one thing and one thing only: putting the city of Hartford on a sustainable path to long-term fiscal strength.”