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Maine's Credit Rating Unscathed by Toll of Pandemic

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May 24, 2021


AUGUSTA — Maine’s credit rating has emerged unscathed during the pandemic, with two major credit-rating agencies affirming the state’s financial health on Monday.

Moody’s Investors Service and S&P Global Ratings gave the state solid marks for its performance during the pandemic.

S&P affirmed the state’s “active budget management” and strengthening of state reserves. Moody’s stated that Maine has a “strong financial position with adherence to governance best practices.”

“These stable ratings demonstrate that Maine is in a solid financial position, our economy is recovering and our state is a worthy investment,” Democratic Gov. Janet Mills said Monday in a statement.

Next month, Treasurer Henry Beck will sell bonds that will fund approximately $117 million in voter-approved projects.

Mills credited the administration’s fiscal management, federal support and Maine people’s resilience for keeping state finances steady despite a pandemic that slowed economic growth and lefts tens of thousands jobless.

With the state economy improving, the revenue forecasting committee projected the state will collect $941 million more than expected over the next two years. The anticipated extra income, along with federal aid, provided the underpinnings for the governor’s proposal to boost the state’s share of primary education costs to 55 percent — meeting a goal established in a voter referendum more than 15 years ago.

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