New Haven Selling Roads to Yale Shows Fiscal Strain: Muni Credit
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New Haven, Connecticut, sold two streets this year to Yale University, its biggest employer, and raised taxes to bolster its finances. The moves haven’t been enough to win over investors and ratings companies.
The hometown to the 312-year-old Ivy League school saw the extra yield buyers demand on part of a $38 million bond sale last week almost double from issues in August and last year, data compiled by Bloomberg show. Moody’s Investors Service and Fitch Ratings both cut New Haven’s credit grade twice since April and give it a negative outlook.