A year after Maryland's bond rating was downgraded, state officials drop Moody's

Added: 2026-05-30

[00:00:02]As Maryland [music] is facing questions about its financial direction, the state cut ties with Moody's, a major credit rating company.

[00:00:09]>> This comes a year after they downgraded Maryland's credit rating. Fox 45's Jessica Babb shows us why some Republican lawmakers are slamming that decision.

[00:00:19]>> Well, officials with Governor Wes Moore's office say that Maryland maintains one of the strongest credit ratings in the country. Republicans are pushing back saying dropping Moody's doesn't solve the state's financial issues.

[00:00:30]>> With a major shakeup, Maryland state officials are dropping Moody's a year after the company downgraded the state's bond rating and creditworthiness.

[00:00:38]>> So, they're firing Moody's essentially and trying to get somebody else to give them a different answer.

[00:00:42]>> The state treasurer's office saying the state recently received ratings from other companies including S&P, Fitch, and Kroll Bond Rating Agency, earning a triple bond rating. In a statement, they say they partnered with a rating agency that better aligns and recognizes the strengths and stability Maryland brings to the market, which will be demonstrated at the bond sale next Wednesday. A decision Republican Senator Justin Ready is blasting.

[00:01:04]>> We've got to find a way to bring down the cost of living for working families and get government back under control.

[00:01:10]And this is Moody's is basically saying to us when they said when they downgraded it's just like your books are in trouble. It's the doctor saying you need to go on a diet. And the Maryland Democrats don't want to go on a diet.

[00:01:23]>> A spokesperson for Governor Wes Moore's office says Maryland maintains one of the strongest credit ratings in the country with other companies reaffirming Maryland's triple A rating. They say the ratings agencies recognize Maryland's credit pledge, strong reserve, historically disciplined fiscal management, high income, highly educated workforce, and long record of paying our debts.

[00:01:43]>> Moody's appears to have paid the price for daring to downgrade the state's debt rating and they've been dropped from this next solicitation.

[00:01:50]>> When the state needs to borrow money to finance infrastructure or other projects, they issue bonds which investors can buy. The credit rating shows how safe the bonds are. Economist Anirban Basu says even without Moody's rating, residents could still see the impact.

[00:02:04]>> investors are smart. They understand what risk looks like. And just by dropping a ratings agency doesn't mean that it all of a sudden investors don't know what's going on. They know that Moody's downgraded Maryland's debt for the first time in 52 years last year.

[00:02:19]And they know that Maryland's economic environment is actually worsening right now. And if anything would be becoming a riskier proposition. And they're going to reflect that in the interest payments they demand to buy our debt. So, we're going to be paying higher interest because of all of this.

[00:02:33]>> Not to mention it's coming at a time when affordability in Maryland is front and center.

[00:02:38]>> Marylanders are already burdened by high cost of living and high taxes and they're leaving the state. Which means that fewer of us are left to finance the burden of government and the services it provides. And so, again, we have to turn this around.

[00:02:51]>> In a statement from Governor Wes Moore's office, Governor Wes Moore recognizes there are tough budget decisions ahead and says he'll make them responsibly and in partnership with lawmakers. In Baltimore, Jessica Babb, Fox 45 News.