Maryland lost its treasured “triple triple-A” bond rating Wednesday when a key bond-rating agency downgraded its assessment of the state’s creditworthiness to Aa1.
The move by Moody’s ends more than three decades in which Maryland held the highest bond rating from the three rating agencies: Moody’s, Standard & Poor’s and Fitch. Moody’s had given Maryland a AAA rating every year since 1973 — until Wednesday. Prior to Wednesday’s announcement, Maryland was one of 14 states to have the highest rating from the three major agencies — Fitch, Moody’s and Standard & Poors.
A triple-A rating means the state pays the lowest rates when it sells bonds to fund public projects. The downgrade means the state — and taxpayers — could pay more in interest on that borrowed money.
The change announced Wednesday could mean taxpayers will pay more in interest on the money the state borrows.
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