Treasurer Lemoine - 3rd Bond Rating Agency Confirms Maine’s “Conservative Debt Practices”
June 5, 2006
For Immediate Release
June 5, 2006
Contact: David Lemoine, 207-624-7477
Treasurer Lemoine - 3rd Bond Rating Agency Confirms Maine’s “Conservative Debt Practices”
(AUGUSTA)- State Treasurer Dave Lemoine reported today that Standard & Poors Rating Services (S&P) awarded a stable AA- rating to Maine’s general obligation bonds. In their June 1, 2006 report, S&P cites as a credit strength Maine’s “[f]avorable debt position with a low debt burden and rapid amortization of debt outstanding due to conservative debt practices.” S&P is the third bond rating agency to indicate that Maine’s debt is conservative. Moody’s and Fitch Ratings also released reports noting Maine’s improving financial position and conservative debt practices earlier this week.
“All three bond rating agencies have recognized that Maine’s financial position is strong and improving,” noted Lemoine. “The spending restraints, financial controls and reserve replenishment efforts that the Governor and the Legislature enacted were lauded by all of the rating agencies.”
S&P’s AA- rating with a stable outlook maintains Maine’s current credit position while noting that, “over the past nine months, the state’s economic outlook has improved.” S&P also stated that “a constraint on the rating remains the state’s active tax reform environment, which creates revenue uncertainty.”
The state sold nearly $37 million of tax exempt general obligation bonds on Friday and will offer $12.9 million in taxable bonds today and Tuesday. The S&P report may be viewed via www.standardandpoors.com
