Two major credit rating agencies have given Maine a clean financial bill of health.
It’s the third time that Moody’s Investors Services and Standard and Poors Global Ratings affirmed Maine’s high credit rating despite the turbulence of the coronavirus pandemic.
Moody’s, which has given Maine an Aa2 rating, reported that the state’s “financial position has improved markedly over the last year,” while S&P analysts, who have given the state an AA rating, praised Maine’s “prudent expenditure management” and “measured approach to budget management with an emphasis on proactive structural solutions.”
Both firms gave Maine top marks for its “rainy day fund,” which has reached a record $493 million. S&P described the rainy day fund as “very strong.”
The ratings mean investors aren’t concerned about the state’s financial stability, particularly its ability to repay debt.
“These positive ratings confirm our good fiscal management of the State. Maine’s budget is balanced, our Rainy Day Fund is at a record high, our economy has made one of the best comebacks in the nation, and we have delivered one of the strongest relief measures in the nation,” Gov. Janet Mills said Friday. “We will continue to make sure that Maine State Government meets its obligations to Maine people while living within its means.”
Moody’s and S&P affirmed Maine’s high credit rating in 2021 and 2020, even as many states saw their credit downgraded amid the unprecedented crisis caused by the pandemic.