Maine's Budget Recovery Yields a $1 Billion Cash Pile

  • Maine contributing all its required pension contributions
  • Investors trade AA-rated G.O. bonds more like AAA-rated debt
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In the financial markets, Maine is known for more than just lobster and Stephen King -- with a conservative fiscal stance, its AA-rated general-obligation bonds are trading as if they were rated AAA.

Despite being a politically divided state, with a Republican governor and Democratic legislature, Maine "has been able to come together and enact a timely, responsible budget over the last few biennial cycles," said Julius Vizner, an analyst for Moody’s Investors Service, which rates the state Aa2, the third-highest grade.