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Maryland Could Lose Prized AAA Bond Rating

April 10th, 2013 by WCBC Radio

Maryland Treasurer Nancy  Kopp has warned could lose one of its prized AAA bond ratings if the U.S. government fails to find a way out of its debt and budget problems in the coming months.  Kopp told a Senate committee in Annapolis during the just completed session that Moody's — one of the nation's three leading rating houses — has informed state officials that if it decides to downgrade U.S. Treasury bonds, it will also lower the scores of Maryland and three other AAA states. Standard & Poor's and Fitch, the other two, have not given any such warning. A Moody's downgrade would take away a distinction Maryland and 14 other states wear as a badge of honor. In addition to allowing a state to borrow money at better interest rates than lower-ranked states, a AAA bond rating bolsters a state's reputation for fiscal integrity. Maryland has held the top ranking from all three houses ever since the rankings began, according to the treasurer's office. Allegany County Commissioner Bill Valentine says there would be a domino effect that would be felt by local governments in the state…

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