Maine officials say the state continues to hold a strong credit rating after receiving favorable ratings from two major credit-rating agencies.
Moody’s Investors Services rated Maine’s credit as “positive,” an upgrade from the previous “stable” outlook. S&P Global Ratings continues to rate Maine as stable.
Both ratings make it easier for the state to apply for federal bonds that fund infrastructure and important services to residents. During its most recent review of Maine’s credit, Moody’s said their rating “reflects strong financial reserves that will likely remain through the fiscal 2024-25 biennium given a structurally sound budget and conservative revenue projections.”
“The rating also reflects strong fiscal governance and financial flexibility as well as manageable fixed costs,” Moody’s said in its May 31 report. The agency added that “above-average leverage from pension, (other post-employment benefits) and debt liabilities is the state’s primary credit challenge while its aging population and below-average incomes pose challenges to long-term economic growth.”
In its review, S&P said Maine has “good financial policies and budgetary management,” as well as the state’s “stable government framework”.
“These positive ratings and the improved outlook from Moody’s confirm our good and responsible fiscal management of the state and the effectiveness of our policies,” Gov. Janet Mills in a written statement Wednesday. Mills cited a balanced budget, the state’s rainy day fund and low unemployment rates. “We will continue to invest in Maine people to build a stronger, more prosperous state, and we will do so while meeting our obligations and living responsibly within our means.”
Mills and various members of her administration received the rating after updating Moody’s and S&P on a telephone call Thursday.
Moody’s and S&P have previously recognized Maine’s strong credit ratings. In 2021, their outlooks showed a rating mostly unscathed by the COVID-19 pandemic.
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