Maryland has again retained its AAA bond rating, however all three rating agencies continued to raise concerns with the funding level of state pension system and the effects of federal budget reductions. As reported by MarylandReporter.com,
Moody’s said “low retirement system funded levels” represent a credit challenge for the state and “failure to adhere to plans to address low pension funded ratios” could make the rating go down.
Fitch Ratings noted, “Despite pensions being a comparative credit weakness, the state has taken multiple steps to reduce their burden and improve sustainability over time.”
S&P noted “implementation of various reforms and some improvements in funded ratios,” But it said “the state’s below-average pension funded ratios and annual contributions that do not meet the full [annual contribution] also continue to represent downside risk to the rating.”
The rating agency reports can be found on the State Treasurer’s website.