Governor Mills & Treasurer Perry Announce Affirmation of Maine's Strong Credit Ratings by Moody's, S&P Global

Ratings by top credit agencies demonstrate Maine's prudent budgeting and healthy reserves achieved under Governor Mills

Governor Janet Mills and State Treasurer Joseph Perry announced today that top international credit rating agencies Moody's and S&P Global Ratings have confirmed their strong bond credit ratings for the State of Maine.

In its affirmation statement, S&P credited Maine's AA rating to "its responsive budget management, including formalized and timely revenue forecasting and periodic budget stress testing, which we believe help the state prepare for potential economic risks and budgetary pressures."

Moody's said Maine's "solid fund balances and liquidity, manageable leverage from debt and retirement liabilities, and strong pension contributions," influenced its affirmation of Maine's credit rating of Aa1, their second highest possible rating.

"Maine's strong financial picture and healthy reserves are confirmed by these ratings by Moody's and S&P," said Governor Mills. "Over the last seven years, my Administration has produced responsible, balanced state budgets that have made significant investments to benefit Maine people and improve our economy, while also delivering more than $1 billion in tax relief and increasing our reserve funds to record levels. This disciplined approach should put Maine on strong financial footing for the years to come."

"These reaffirmed credit ratings continue to show confidence in the fiscal policies pursued by Governor Mills and the Legislature," said Treasurer Perry. "These are highlighted by strong budget management and the state's significant financial reserves."

"We are gratified that after S&P's and Moody's rigorous review of all aspects of the State of Maine's financial picture, they concluded that the discipline applied by the Mills Administration to financial management through revenue forecasting, budget stress testing, strong pension fund practices, among other things, continues to justify a strong credit rating," said Elaine Clark, Commissioner of the Department of Administrative and Financial Services.

These positive bond ratings follow the recent enactment by Legislators of Governor Mills' supplemental budget which includes the Governor's proposals to permanently establish two free years of Community College for Maine graduating seniors; direct financial relief to more than 500,000 Maine people; deliver enhanced property tax relief for Maine households; and build on her administration's record investments in housing.

Under the leadership of Governor Mills, the Budget Stabilization Fund had increased to a near record high amount and statutory maximum of $1.03 billion, an increase of more than $820 million since taking office in 2019. Under the supplemental budget enacted by the Legislature, the Budget Stabilization Fund balance will stand at more than $738 million, a robust and healthy amount to help the State of Maine withstand any potential economic downturn.

Both S&P and Moody's concluded that the BSF balance and other available liquid assets "continue to provide financial cushion against potential revenue or expenditure uncertainties."

The budget also preserves funding for the State's 55 percent share of education costs, maintains access to health care, conforms with new Federal tax laws, and makes important investments in education, public safety, and economic development.

These initiatives build on nearly $1.1 billion in direct tax relief for Maine people and businesses in the 2026-2027 State budget, which includes the Earned Income Tax Credit, the Dependent Exemption Tax Credit, the Student Loan Tax Credit, and the Property Tax Fairness Credit. A full list of tax relief programs is available here (PDF).

In recent years, Governor Mills, through strong financial management, secured rating upgrades including Moody's 2023 increase to Aa1, their second highest rating, and Fitch's 2025 IDR rating increase to AA+, their second highest rating.