Maryland State Treasurer Nancy K. Kopp announced earlier this month that the three major bond rating agencies have reaffirmed the State's AAA bond rating, all with stable outlooks, in advance of the upcoming competitive sale of up to $615.0 million of tax-exempt new money bonds and negotiated sale of up to $241.4 million of tax-exempt forward refunding bonds. Both are expected to be approved on Wednesday, Aug. 11, 2021.
Maryland is one of thirteen states* to hold the coveted AAA rating, the highest possible rating, from all three major bond rating agencies. S&P Global Ratings has rated the bonds AAA since 1961, Moody’s Investors Service has assigned the bonds a rating of Aaa since 1973, and Fitch Ratings has rated the bonds AAA since 1993.
Moody’s Investors Service, in providing its rationale for its Aaa rating, noted that “the budgetary flexibility afforded to Maryland by its Board of Public Works... has been on display throughout the pandemic” by helping to free up hundreds of millions of dollars to close gaps in fiscal years 2021 and 2022. Moody’s also notes that the State’s better-than-expected performance has allowed it to simultaneously close budget gaps, maintain significant reserves, and provide over $1 billion in spending to support Maryland residents and businesses.
The other twelve states with AAA ratings from all three rating agencies are Delaware, Georgia, Florida, Indiana, Iowa, Missouri, North Carolina, South Dakota, Tennessee, Texas, Utah, and Virginia.