Bond rating agencies see stability in state

AUGUSTA – The King administration is expressing satisfaction with the latest reviews from Wall Street.

“They all confirmed Maine’s high positive ratings,” Commissioner Janet Waldron of the Department of Administrative and Financial Services said Wednesday.

This month, three rating agencies reviewed the state’s fiscal status as Maine prepared to issue $27.6 million in bonds.

Standard & Poor’s said its AA+ rating on Maine general obligation bonds reflected:

. “A diversifying economy that has demonstrated stability through the recent national recession;”

. “Financial performance that, while recently weakened, has a strong and solid history demonstrated by conservative budgeting practices;”

. “A favorable debt position with a low debt burden and rapid amortization schedule.”

The S&P analysis added: “The stable outlook reflects the expectation that the state will resolve the budgetary imbalance of fiscal 2003 and that the economy will continue to diversify and grow.”

Similarly, Moody’s Investors Service said its Aa2 rating “reflects an economy that continues to diversify and expand, although at a slower pace in the last year, and continued steady improvement in fund balance levels, spending controls and debt levels near the state medians.”

Noting the looming revenue shortfall, Moody’s said, “In the long term we anticipate that Maine’s positive underlying trends are likely to persist upon the return to a favorable national economic environment.”

Fitch Ratings gave Maine its AA+ grade, citing “the strengthened underlying economy, conservative financial operations and institutionalization of financial reforms, including accounting, the revenue estimation process and debt control.”