Credit quality in Connecticut has fallen dramatically over the last decade and now ranks toward the bottom out of all 50 states. 

That’s according to a report recently published by the Hartford-based investment manager Conning, which examined credit-quality issues that have made headlines in recent years.  

Those issues include the health of states’ reserves and its preparedness for the next recession; fixed costs in a state; the funding status of state pension plans and key factors in population shifts, among other issues. 

The report ranked Connecticut 46th in the country in terms of credit quality. That is two spots higher than the state was in last year’s report and 28 spots higher since 2009. 

The report attributed Connecticut’s poor ranking to a sluggish economy, a weak housing market, little population growth and high debt burden.  

The report did, however, note that Connecticut ranked highly for state GDP per capita (fourth place) and median household income (fifth place). 

The Nutmeg State also has the highest percentage of total fixed costs as a proportion of its general fund expenditures at 28 percent. Furthermore, the report notes that population decline has dented Connecticut’s tax base, which is something that states need in order to offset high amounts of fixed costs. 

Elsewhere in New England, Connecticut’s credit quality ranked behind New Hampshire (seventh), Massachusetts (23rd), Maine (37th), Vermont (45th) and ahead of Rhode Island (47th). 

The best overall credit quality in the country went to Utah and the worst was Kentucky.