Maryland Retains AAA Rating in Advance of $400M Bond Sale

Moody’s, S&P Global, and Fitch Ratings Reaffirm Maryland’s AAA Bond Rating, Outlook Stable.

Maryland State Treasurer Dereck E. Davis announced that the three major bond rating agencies reaffirmed the State’s AAA bond rating, the longest continuous Triple-AAA bond rating for a state in the country.

Maryland is one of only 13 states* to hold the coveted AAA rating – the highest possible – from all three major bond rating agencies. S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings have each assigned the State the same ratings since 1961 (AAA), 1973 (Aaa), and 1993 (AAA), respectively. The news comes as the State prepares to sell up to $400 million of general obligation bonds on Wednesday, March 15.

“As I have said previously, preserving Maryland’s AAA bond rating is my number one priority,” said State Treasurer Dereck Davis. “Despite the uncertainty of our economy, rating agencies continue to have confidence in Maryland’s sound fiscal policies. Today’s news ensures that the interest rates on the State’s bonds remain low, saving Maryland taxpayers millions of dollars that can be invested in our state’s critical needs like education, infrastructure, and public safety.”

On March 15, the State will sell up to $350 million of tax-exempt bonds and up to $50 million of taxable bonds. As is always the case with Maryland’s tax-exempt General Obligation Bonds, the State will use the proceeds to finance essential capital projects and improvements, such as public schools, community colleges, university projects, and hospitals.

The Maryland Board of Public Works, composed of Governor Wes Moore, Treasurer Dereck E. Davis,  and Comptroller Brooke Lierman, will preside over the competitive bond sale at its meeting on Wednesday, March 15, 2023, in the Assembly Room of the Goldstein Treasury Building in Annapolis.

* The other twelve states with AAA ratings from all three rating agencies are Delaware, Florida, Georgia, Indiana, Iowa, Missouri, North Carolina, South Dakota, Tennessee, Texas, Utah, and Virginia.

Read the State Treasurer’s press release for more information.