Maryland has announced that it has retained its AAA bond rating, the highest possible rating, ahead of a sale of state General Obligation Bonds next week. State Treasurer Dereck E. Davis revealed that Maryland is among the 13 states that hold a AAA rating from all three major rating agencies, S&P Global, Moody’s Investors Service, and Fitch Ratings.

Both S&P and Moody’s Investors Services have stated that Maryland has a “stable” financial outlook. Fitch Ratings, on the other hand, has described the state’s “financial resilience as extremely strong, with well-funded budgetary reserves, consensus-oriented decision-making with a willingness to trim spending and increase revenues, and disciplined multiyear forecasting and planning.”

Davis said that “preserving Maryland’s AAA bond rating is my number one priority,” adding that “despite the uncertainty of our economy, rating agencies continue to have confidence in Maryland’s sound fiscal policies.”

The state treasurer is set to oversee the sale of state General Obligation Bonds in the Assembly Room of the Goldstein Treasury Building in Annapolis next Wednesday. The sale is expected to include up to $350 million of tax-exempt bonds and up to $50 million of taxable bonds.

General obligation bonds are a type of municipal bond that are issued with the “belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects,” according to Investopedia. Ratings, like those provided by S&P and Fitch, indicate the relative ability of an entity to meet their financial commitments.

Maryland’s AAA bond rating indicates its excellent ability to meet its financial commitments, making it an attractive choice for investors looking for a stable investment.

David M. Higgins II, Publisher/EditorEditor-in-Chief

David M. Higgins II is an award-winning journalist passionate about uncovering the truth and telling compelling stories. Born in Baltimore and raised in Southern Maryland, he has lived in several East...

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