Maryland credit rating downgraded by Moody's, losing coveted AAA rating

Maryland's cost to borrow money will soar after credit agency Moody's downgraded the state's credit rating from the coveted AAA to Aa1 today. Moody's ratings system charitably denotes Aa1 as being a "high quality" investment, as opposed to AAA's recognition of a "highest-quality" investment. In practice, however, the lower grade means you - the taxpayer - will pay a higher rate of interest when Maryland issues bonds to pay for infrastructure projects, for example.

The rating downgrade was first reported by Maryland Matters, which noted that today's change ends a remarkable streak of the state holding a AAA rating from Moody's since 1973. That success was sustained under Democratic and Republican governors alike. Maryland Governor Wes Moore (D) attempted to deflect blame to Donald Trump in a rant on X this afternoon, despite frittering away a $5.5 billion budget surplus left to him by previous governor Larry Hogan (R). 

Maryland has been hamstrung by the fiscally-deadly combination of out-of-control spending, the flight of the rich and retirees to lower-tax states, and a failure to lure any major corporate headquarters to the state this century. Yet, Moore and the Maryland General Assembly have continued to support the controversial Blueprint for Education, a state teacher's union-driven boondoggle every rational budget expert warned could lead to fiscal disaster down the road.

Our state is now closer to that disastrous destination with today's credit downgrade. Maryland was already barely able to close a budget deficit this year. What will it do next year, now that borrowing money will cost significantly more, and its economy remains moribund?