Maryland's sterling triple-A bond rating has been re-affirmed by the three national credit rating agencies, meaning the state can continue borrowing money at low interest rates, according to Maryland State Treasurer Nancy Kopp.
Maryland is one of only eight states that has kept a triple-A bond rating through the recession.
"While Maryland has historically received AAA ratings from the three major bond rating agencies, given the national uncertainties surrounding both the federal deficit and the economic recovery, we are pleased the rating analysts recognize Maryland's strong, stable and prudent fiscal management," Kopp said.
Despite giving Maryland the highest possible credit rating, Moody's Investors Service assigned the state a negative credit outlook due to its economy's dependency on the federal government, which had its credit rating downgraded last year.
The rating agencies also issued warnings about the state pension system's severe underfunding.
"The funded levels of Maryland's retirement system represent a credit challenge for the state," Moody's wrote. Standard & Poor's said the funding levels "continue to represent downside risk to the rating."