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Maryland retains AAA rating

Maryland has retained its Triple A rating – the highest possible – from all three bond rating agencies, in preparation for the sale of approximately $600 million of general obligation bonds on Wednesday.

The Maryland State Treasurer’s office said the bond sale will include $200 million worth of refunding bonds to refinance earlier issued, higher cost debt at lower interest rates.

The state estimates it will save about $6 million by refinancing the higher interest rate bonds, officials said. In addition to the refunding, the state intends to issue $400 million in taxable Build America bonds to finance capital projects.

Under the federal economic stimulus act, Maryland will receive a federal subsidy of 35 percent of the interest cost of the taxable bonds.