The three national rating agencies have renewed their AAA rating for Maryland’s upcoming $718 million bond issue, but all three continue to be concerned about the state’s pension funding and dependence on federal government spending.
These factors were outweighed by the state’s strong economy, its high income and sound fiscal management. The analysts acknowledged the improvements made by the pension changes made earlier this year.
Maryland has been getting the AAA rating for decades — one of just eight states with a top rating — but State Treasurer Nancy Kopp said retaining it this year is “an extraordinary accomplishment.”
“Considering the uncertainty at the federal level over debt ceilings and deficit reductions, we are pleased the rating analysts recognize Maryland’s strong, stable and prudent financial management,” Kopp said in a statement.
The analysts visited Maryland last month to meet with officials, and earlier this week Kopp told legislators she was concerned the impasse over the federal debt ceiling might force delay of the planned bond issue July 27. Next Friday, $100 million of the bonds go on sale to Maryland residents.
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