Overview

• S&P Global Ratings affirmed Maryland’s AAA credit rating with a stable outlook, citing expectations of structural balance and sufficient reserves.
• Fitch Ratings maintained its AAA assessment last week but warned of persistent long-term liabilities and pressures from education funding commitments.
• Moody’s downgraded the state to Aa1 earlier in May, highlighting economic underperformance against peer AAA states and the impact of federal workforce reductions.
• Lawmakers addressed a $3.3 billion budget deficit by enacting spending cuts and tax increases aimed at securing a surplus and rebuilding reserves.
• Policymakers caution that heavy dependence on federal funding and the expanding costs of the Blueprint for Maryland’s Future plan may strain fiscal sustainability.