Maryland will issue $400 million of fixed-rate general obligation bonds this week in a competitive transaction to fund various projects across the state.
The bonds, which will be sold Wednesday, were assigned triple-A ratings with stable outlooks from Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings.
The deal is the first of two GO issues the state plans to do this year, debt officials have said. The rating reflects the state’s broad-based economy, which has historically outperformed the national economy and is projected to continue to grow over the near term, albeit at a reduced rate, according to Standard & Poor’s
“Maryland’s economic base is substantial and diverse, benefiting from a mature infrastructure and a well-educated labor force,” said analyst Richard Marino.
High wealth and income levels, unemployment below the national average, historically strong financial management and performance, and strong liquidity have also contributed to the state’s fiscal stability, analysts said.
Faced with a $1.6 billion structural deficit for fiscal 2009, Maryland passed legislation at a special session last October that is expected to result in more than $1 billion in increased revenue, reductions in state budget growth, and cost savings and initiatives.