WASHINGTON – Wall Street still considers Maryland a good bet. All three credit-ratings agencies have reaffirmed the state’s top credit rating ahead of the June bond sale.
Standard and Poor Global Ratings, Fitch Ratings and Moody’s Investors Service all gave Maryland debt their AAA ratings. Maryland has held Standard and Poor’s top rating since 1961 and Moody’s AAA rating since 1973. Fitch has rated Maryland bonds AAA since 1993.
“Maryland’s ‘AAA’ rating reflects its broad, diverse and wealthy economy, extensive budget controls and sound financial operations and strong management of debt,” Fitch Ratings said in a statement.
Maryland is one of only nine states to hold top ratings from all three ratings agencies. Virginia is also a top-rated state for debt offerings.
However, all three agencies cite weakness in Maryland’s long-term pension liabilities.
Maryland will sell $1.036 billion of tax-exempt bonds on June 8, the state’s only planned bond sale in 2016.
The General Obligation bonds will be used to finance capital projects, including schools, community colleges and university projects.
Maryland’s next bond sale will be in early 2017.