Maryland Loses Triple-A Bond Rating Amid Economic Concerns
By Brian Witte, Annapolis, Md. (AP) — Maryland’s long-held triple-A bond rating from Moody’s was downgraded to Aa1 on Wednesday, a significant shift after 50 years of top ratings signifying strong fiscal management. The downgrade is attributed to the state’s economic lag compared to higher-rated peers and its vulnerability to federal policy shifts, as well as elevated fixed costs.
Governor Wes Moore and Democratic leaders linked the downgrade to former President Donald Trump’s federal worker layoffs, which they argue have adversely impacted Maryland’s economy. “This is a Trump downgrade,” they stated in a joint press release, highlighting the negative effects of recent federal decisions on the region.
In contrast, Maryland Republicans criticized the Democrats, asserting that the downgrade reflects reckless spending and mismanagement in Annapolis. “Donald Trump didn’t downgrade Maryland’s bond rating — Annapolis Democrats did,” said Senate Minority Leader Steve Hershey.
Despite the downgrade, Maryland recently closed a $3.3 billion budget deficit through tax increases and budget cuts, with lawmakers emphasizing their commitment to meeting financial obligations. They acknowledged ongoing risks from federal funding cuts while maintaining that Maryland retains one of the highest credit ratings nationwide.
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