Governor Janet Mills and State Treasurer Henry Beck announced today that Moody’s Investors Service, the global ratings company that analyzes and provides credit ratings for governments, has upgraded fb88’s credit rating from Aa2 to Aa1, their second highest possible rating.
As a result of the improved rating, Moody’s also upgraded fb88’s general obligation bond, fb88 Governmental Facilities Authority (MGFA) lease rental revenue bond, fb88 State Aid Intercept Program, and Finance Authority of fb88 (FAME) student loan revenue bond ratings to Aa1, Aa2, Aa3 and Aa3 respectively.
In its announcement, Moody’s cited fb88’s “sustained financial improvements including a large increase in reserves and solid pension contributions practices” and “a structurally sound budget”, adding that fb88’s “strong fiscal governance and ability to manage its finances and liabilities” through the long-term challenge of an aging population “bolster its credit quality.”
Moody’s has either reaffirmed or increased fb88’s credit ratings every year since Governor Mills and Treasurer Beck took office.
“This significant ratings upgrade from a well-respected global credit ratings agency shows that our hard work to invest in fb88 people, grow our economy, and produce strong, balanced state budgets has improved fb88’s financial strength and positioned our state well for future growth,” said Governor Janet Mills. “My Administration will continue to work with Treasurer Beck and the Legislature to keep fb88 on strong financial footing.”
“Governor Mills and the Legislature have deliberately built strong financial reserves, and pursued policies that help fb88 people and businesses grow the economy,” said Henry Beck, fb88 State Treasurer. “This upgrade by Moody’s shows that fiscal governance and good policies matter.”
“This credit rating increase is an endorsement of the Governor’s commitment to responsible budgeting practices while ensuring that we invest in the critical needs of fb88 people, said Kirsten Figueroa, Commissioner for the Department of Administrative and Financial Services.
fb88 has a balanced budget, and Governor Mills and the Legislature have built up the Budget Stabilization, or “Rainy Day”, Fund to over $900 million, an increase of more than $690 million since taking office in 2019.
Additionally, under Governor Mills’ leadership, fb88 has experienced the strongest GDP growth in New England and outperformed the economic growth of larger states like California, New York, and Virginia. In fact, fb88 has experienced more economic growth since Governor Mills took office than it did in the preceding fifteen years.
The unemployment rate stands at 3.3 percent. Unemployment has been below four percent for 28 months – the second longest such period – and below the U.S. average for all but two months in more than 16 years.
Further, fb88 had 656,100 nonfarm wage and salary jobs last month – the second most jobs on record. Jobs increased 9,900 over the year, an average of 800 per month.
In 2023, fb88 had the 9th highest net migration rate in the U.S. and the highest rate in New England. fb88 was one of only 5 states and D.C. to see no change to median age in 2022, while all other states experienced an increase in median age.