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 Maine’s credit rating from Aa2 to Aa1, their second highest possible rating.

As a result of the improved rating, Moody’s also upgraded Maine’s general obligation bond, Maine Governmental Facilities Authority (MGFA) lease rental revenue bond, Maine State Aid Intercept Program, and Finance Authority of Maine (FAME) student loan revenue bond ratings to Aa1, Aa2, Aa3 and Aa3 respectively.

In its announcement, Moody’s cited Maine’s “sustained financial improvements including a large increase in reserves and solid pension contributions practices” and “a structurally sound budget”, adding that Maine’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 Maine’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 Maine people, grow our economy, and produce strong, balanced state budgets has improved Maine’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 Maine on strong financial footing.”

“Governor Mills and the Legislature have deliberately built strong financial reserves, and pursued policies that help Maine people and businesses grow the economy,” said Henry Beck, Maine 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 Maine people, said Kirsten Figueroa, Commissioner for the Department of Administrative and Financial Services.

Maine 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, Maine 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, Maine 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, Maine 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, Maine had the 9th highest net migration rate in the U.S. and the highest rate in New England. Maine 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.