Moody’s, S&P affirm Maine’s strong credit rating

File Photo The state of Maine earned continued strong credit ratings and stable outlooks from Moody’s and S&P.

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By Staff

Two credit rating companies, Moody’s Investors Service and S&P Global Ratings, have affirmed their opinions on the state of Maine’s general obligation debt.

Moody’s affirmed its Aa2 rating while S&P affirmed its AA rating, and each company continued to provide a "stable outlook" on the state's debt.

In its affirmation, S&P commended Maine’s “prudent expenditure management” and “measured approach to budget management with an emphasis on proactive structural solutions.”

Moody’s said Maine’s “financial position has improved markedly over the last year” and that the state's rainy day fund has grown significantly. S&P described projected fund levels as “very strong.”

Moody’s and S&P have consistently reaffirmed Maine’s credit ratings in recent years, including during the pandemic when ratings and outlooks in at least 22 states were downgraded, according to a news release from the office of Gov. Janet Mills.

“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,” Mills said. “We will continue to make sure that Maine State Government meets its obligations to Maine people while living within its means.”

In May 2020 and May 2021, S&P said Maine demonstrated “active budget management” and “steady progress in strengthening its reserve profile” and noted the state’s cash pool was “very good.” Moody’s said Maine had a “strong financial position with adherence to governance best practices.”

The state's "rainy day" money, the Budget Stabilization Fund, currently totals a record high of $493 million.

Maine has a $1.2 billion budget surplus, and is returning over half of it to Maine taxpayers in the form of $850 relief checks.