Moody's Investors Service yesterday downgraded to Aa from Aa1 the general obligation bond rating of Maine, citing concerns about the state's fiscal outlook for the 1990's.
The downgrade covers $545 million of outstanding GO bonds. The state had bee rated Aa1 since 1982.
"The effects of the state's protracted economic slowdown and the belief that most of the 1990's will not be any better was the main reason for the downgrade," said Steven Hochman, vice president and assistant director of state ratings for Moody's. "The 1990's just don't look as good for the state as the 1980's were."
Hochman also said that one-time budget balancing actions have increased the long-term burden on Maine's economy.
Standard & Poor's Corp. rates the state AA-plus.
