Maryland State Treasurer Nancy K. Kopp announced this week that the three major bond rating agencies have reaffirmed the State’s AAA bond rating, the longest continuous Triple-AAA bond rating for a state in the country. The announcement comes in advance of the upcoming competitive sale of State General Obligation Bonds on Tuesday, March 26, 2019.
According to a press release:
Maryland is one of twelve 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.
Treasurer Kopp said, “We are pleased and proud that Maryland continues to be recognized as a triple-AAA State, a distinction that affirms our State’s overall fiscal strength and longstanding commitment to prudent and proactive financial management. The rating agencies recognize that our dynamic economy, highly educated workforce, and aboveaverage wealth and income levels make Maryland an outstanding investment.”
“The AAA ratings will allow the State to achieve lower interest rates on its bonds, saving the taxpayers of Maryland millions of dollars and freeing up resources that will allow us to continue to invest in our local communities, notably our schools, libraries, institutions of higher education, healthcare facilities and cultural projects important to the residents of our State,” Treasurer Kopp added.
The bond sale will include $490,000,000 of tax-exempt bonds sold in two bidding groups to enhance competition: Bidding group 1 – $265,040,000 of tax-exempt bonds; and Bidding group 2 – $224,960,000 of tax-exempt bonds. Both bidding groups are expected to be sold to institutions.
As is always the case with Maryland’s tax-exempt General Obligation Bonds, the State will use the proceeds to finance important capital projects and improvements, such as public schools, community colleges, university projects and hospitals.
The Maryland Board of Public Works, composed of Governor Lawrence J. Hogan, Jr.,
Treasurer Nancy K. Kopp, and Comptroller Peter Franchot, will preside over the competitive bond sale on Tuesday, March 26, 2019 in the Assembly Room in the Goldstein Treasury Building in Annapolis.
The Maryland State Treasurer’s Office expects to conduct another bond sale in August or September 2019.
*The other eleven states with AAA ratings from all three rating agencies are Delaware, Georgia, Florida, Iowa, Missouri, North Carolina, South Dakota, Tennessee, Texas, Utah, and Virginia.
Read the full press release for more information.