AUGUSTA, Maine (AP) - Moody's Investors Service rating agency has affirmed Maine's bond credit rating but revised its ratings outlook from stable to negative ahead of an upcoming sale of $55 million of bonds.
State Treasurer Bruce Poliquin said Friday that the revised outlook is not good news, but will have no financial impact on the state.
Moody's says the revised outlook reflects concerns about recurring budget problems, especially in the Department of Health and Human Services, and modest reserves.
It says a rating downgrade could be triggered by more budget shortfalls, a failure to improve Maine's reserve funds or a slow economic recovery that hinders revenue growth.
Poliquin said the state's Aa2 credit rating is solid. He anticipates strong demand for the state's May 31 sale of $55 million in general obligation bonds.
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