Maryland loses triple-A bond rating from Moody's rating agency

BRIAN WITTE

Wed, May 14, 2025, 11:16 AM 2 min read

ANNAPOLIS, Md. (AP) — Maryland mislaid its triple-A enslaved standing from Moody's connected Wednesday, a standing the authorities has cited for much than 50 years arsenic a motion of beardown fiscal stewardship.

Moody’s downgraded the state’s recognition standing to Aa1. Maryland had received a triple-A enslaved standing from Moody’s since 1973. The authorities has benefitted from the higher standing by paying the lowest rates erstwhile it sells bonds to wage for infrastructure, likes roads and schools.

“The downgrade was driven by economical and fiscal underperformance compared to Aaa-rated states, which is expected to proceed fixed the state’s heightened vulnerability to shifting national policies and employment, and its elevated fixed costs,” Moody’s said.

Gov. Wes Moore and different starring Maryland Democrats blamed President Donald Trump's wide layoffs of national workers, which is having a large interaction connected the region. The District of Columbia besides precocious received a credit-rating downgrade.

“To enactment it bluntly, this is simply a Trump downgrade," Moore said successful connection made jointly by the presiding officers of the state's legislature, Comptroller Brooke Lierman and Treasurer Dereck Davis, who are each Democrats. “Over the past 1 100 days, the national administration’s decisions person wreaked havoc connected the full region, including Maryland.”

Maryland Republicans described the downgrade arsenic “a harsh indictment of the state’s existent absorption nether Governor Wes Moore.”

“Donald Trump didn’t downgrade Maryland’s enslaved standing — Annapolis Democrats did. And present they’re scrambling for idiosyncratic other to blame," Republican Sen. Steve Hershey, the Senate number leader, said successful a statement. "This is the effect of reckless spending, bloated budgets, and an system that’s been hollowed retired by overregulation and overreliance connected the national government.”

Moody's had noted earlier this twelvemonth that national cuts airs a greater menace to Maryland than immoderate different state.

Maryland lawmakers precocious concluded a challenging legislative session to equilibrium the state's budget. They closed a $3.3 cardinal fund shortage for the adjacent fiscal twelvemonth with a operation of taxation increases, fund cuts and money transfers.

Maryland lawmakers besides directed the governor's fund bureau to support way of the interaction of national cuts, alert them if it reaches $1 cardinal and marque recommendations connected however to woody with the impact.

The Democrats' connection noted that Moody's acknowledged that the authorities had closed its fund gap, adjacent arsenic it remains exposed to the economical consequences of national backing cuts and layoffs.

“Maryland inactive holds 1 of the highest imaginable recognition ratings successful the nation," the associated connection said, “and arsenic we person for decades, we volition ever wage our debts.”