Moody's Maintains Maine's Aa3 Bond Rating, Cites Improving Fiscal Condition
May 26, 2006
Moody’s Maintains Maine’s Aa3 Bond Rating, Cites Improving Fiscal Condition
May 26, 2006
For Immediate Release Contact: David Lemoine; 624-7477
(AUGUSTA) - Moody’s Investors Service announced today that it will maintain Maine’s Aa3 general obligation bond rating. “After several years of narrow financial operations, Maine’s fiscal position has improved as indicated by growing reserve levels reflecting management efforts to control spending and rebuild balances depleted during the recession,” the report stated. Moody’s also noted, “The outlook for Maine’s general obligation rating is stable at the Aa3 level reflecting Moody’s expectation that the state will manage its budget challenges and continue to improve its available fund balance levels.”
“The Aa3 rating and stable outlook indicates that Maine is fiscally sound. We expect to once again have a very strong bond sale in both the retail and institutional markets.” State Treasurer David Lemoine. The state plans to sell approximately $52 million of general obligation bonds in June. The retail sale period will take place on June 2 and 5th.
The Moody’s rating report highlights several credit strengths including: growing reserve balances, spending reductions, structural budget balance, low debt ratios, and better than expected outcome of the initial BRAC base closure recommendations. Credit weaknesses include: the negative position of the state’s General Fund unreserved balance, narrow liquidity, the Taxpayer Bill of Rights (TABOR) legislation on the November ballot, and slower job growth.
For a copy of the Moody’s report, please go to www.moodys.com.