...The 'AA+' rating on the authority's lease revenue bonds, one notch below Maryland's 'AAA' Long-Term Issuer Default Rating (IDR), is based on the annual appropriation pledge supporting the bonds. Maryland's 'AAA' IDR reflects its broad, diverse and wealthy economy, extensive budget controls, sound financial operations and strong management of debt. The state's economy has long benefited from proximity to the nation's capital, although exposure to federal budget cuts poses a greater uncertainty for Maryland than for most states given its large federal agency presence and associated private contracting. Fiscal management is very strong, with consensus-oriented long-term planning and multiple sources of flexibility including a consistently solid budgetary reserve and a demonstrated ability to adjust spending to address changing circumstances. Although liabilities are elevated for a state, they are moderate relative to resources and carefully managed. Economic Resource Base: Maryland's economy...
