Fitch downgrades Maine bonds

MaineToday.com ^ | 05/27/05 | Wire Services

[Fido969]

Fitch downgrades Maine bonds

AUGUSTA — As the state prepares for a $143 million spring bond sale, Fitch Ratings Friday became the second Wall Street agency this week to drop its rating for Maine's general obligation bonds.

Fitch said it was downgrading the state's outstanding general obligation to AA from AA+, and assigning an AA rating to bonds expected June 6.

Moody's Investors Service announced Tuesday it was downgrading Maine's general obligation bonds from AA2 to AA3.

Fitch cited "the state's financial pressures in recent years, depletion of reserves, and a continuing structural imbalance, enlarged by assumption of a larger share of educational costs

News 8 - WMTW

[Fido969]

More bad news for Maine.

After STILL refusing to cut taxes in the state with the highest tax burden, the dims STILL came up with a state budget that was 450 million in the red.

To put that in perspective, Maine's deficit *per capita* is TWICE what California's was during Gray Davis' darkest days.

Of course, if we point that out the dims who are running the Statehouse they will accuse us of being "natter nabobs of negativity" and blame the State's trouble on our criticism of them.

[Fido969]

Rewrite last 'graph:

"Of course, if we point that out to the dims who are running the Statehouse they will accuse us of being 'nattering nabobs of negativity' and blame the State's trouble on our criticism of them."

[John Jorsett]

Pfft, amateurs. San Diego can't even issue bonds because the auditors won't certify the city's books and we therefore can't get a bond rating. Maine has a ways to go before attaining our level of corruption, incompetence, and stupidity.

[ProudVet77]

ME is a beautiful state, have traveled from Kittery to eastport to caribou to jackman and most places in between. But there just is nothing up there. They need something to attract businesses. Until then ME will just be a vacation destination. And that is very seasonal up there.

[Fido969]

Well, tourism is a major industry - and that was good because in the folks in southern New England wanted a "cheap" vacation they would go to Maine.

But taxes, health care and insurance costs have driven up the cost of business, and a recent poll of tourists found that Maine is losing it's place as an economical vacation spot. State economists are concerned that may have a negative effect in the future.

[ProudVet77]

Just as I read the first sentence, my thought was "not as cheap as it used to be". ;)
Bar Harbor used to be a bargain, now it's pricey, and the drive makes it to big a headache to go for just short periods. I can go down to Newport RI and stay in a Motel 6 or similar place away from downtown and it's cheaper than Bar Harbor.
Also the summer season is just too short. Those going skiing at Sunday river is nice, but there are plenty of other good spots to compete with in NH.

[JohnnyZ]

I'm sure if Maine just raises taxes and invests more in education it'll pay off 20 years down the road.

[JohnnyZ]

Bar Harbor used to be a bargain, now it's pricey, and the drive makes it to big a headache to go for just short periods.

Yeah but now you can take the high speed ferry to get there! Or just keep going to Nova Scotia!

[Little Bill]

The beer and butts are still cheaper in NH, Baldacci is a commie.

[JohnnyZ]

Apologies for the sarcasm from a former Mainer. Apologies also for state rep Coach Mazurek, an honest guy but a lib.

[TChris]

Yeah but now you can take the high speed ferry to get there! Or just keep going to Nova Scotia!

I have ridden that ferry, The Cat, and it is an impressive machine. It was built in Austrailia, IIRC.

The Cat is the fastest car ferry in North America! Carrying up to 900 passengers and 240 cars across the Gulf of Maine at highway speeds...

The CAT

[Brilliant]

The pain will go on for decades. They are borrowing now. They will have to pay it back later.

[newsgatherer]

Good peice, thanks,

Jake