Maine’s credit rating has been upgraded.
Moody’s Investors Service gave Maine its second-highest rating — Aa1 — affirming the state’s financial health, Gov. Janet Mills announced Wednesday.
Moody’s has affirmed or increased Maine’s credit rating every year since Mills took office, even during the economic challenges at the height of the COVID-19 pandemic.
In announcing its decision, Moody’s cited Maine’s “strong financial improvements,” including increasing financial reserves, “a structurally sound budget,” “solid pension contribution practices” and “strong fiscal governance.”
“This significant ratings upgrade from a well-respected global credit ratings agency shows that our hard work to invest in Maine people, grow our economy, and produce strong, balanced state budgets has improved Maine’s financial strength and positioned our state well for future growth,” Mills said in a statement.
Since Mills took office in 2019, more than $690 million has been added to the state’s “rainy day fund,” bringing it to more than $900 million. Her office also pointed to strong GDP growth, low employment and more people moving to Maine as indicators of the state’s economic health.
“This upgrade by Moody’s shows that fiscal governance and good policies matter,” said Henry Beck, the Maine state treasurer.
Moody’s also gave various state bonds a higher credit worthiness rating.
