A second bond-rating agency has reaffirmed its highest credit rating for Maryland, helping offset a downgrade by a third agency just weeks before a scheduled $1.7 billion bond sale by the state.

The AAA rating from Standard & Poor’s follows a similar rating from Fitch two weeks ago. Standard & Poor’s — one of three firms that Maryland hires to rate its creditworthiness in advance of annual bond sales — issued its rating with a stable outlook for the state, but also with a warning.

“The stable outlook reflects our expectation that the state will make timely adjustments to achieve a structural balance and adequate cash reserves by proactively managing economic and budgetary risks that arise,” the report said.

The back-to-back AAA ratings from Fitch and Standard & Poor’s help take the sting out of Moody’s report, which downgraded the state from Aaa for the first time in more than 50 years, to Aa1. But state officials note that Moody’s has downgraded several other jurisdictions in the region recently — including the United States — and say the latest ratings prove that Maryland’s financial health is strong.

“The Fitch and S&P ratings reaffirmed what we have been saying all along about the state’s sound fiscal management and ability to adapt to an ever-changing federal bureaucracy,” state Treasurer Dereck Davis (D) said through a spokesperson Wednesday morning.

The report comes before a June 11 sale of nearly $1.7 billion in bonds. Money raised in the sale will be used by the state to pay for large infrastructure projects, including school construction.

At a press conference in Baltimore Wednesday, Senate President Bill Ferguson (D-Baltimore City) called the earlier Moody’s rating an “outlier” that reflected a “Trump-based downgrade.”

“It’s very clear because of what happened with the United States and the bonds of the United States now being downgraded – just, unfortunately, the same way that Maryland was with Moody’s,” Ferguson said. “I think that Fitch and S&P made clearly the right choice — that not only is it triple ‘A,’ but we are stable because we make hard choices when we need to in order to grow our economy.”

Ratings issued by the three agencies — Fitch, Moody’s, and Standard & Poor’s — determine what interest rate the state — and taxpayers — pay for borrowing money. The latest rating in many ways is similar to one issued by Fitch, including words of caution that Standard & Poor’s could downgrade the state under certain conditions.

“We could revise our outlook to negative or lower the rating within the two-year outlook period if the state significantly relies on nonrecurring measures to balance its budget, draws down reserves to a level that is unlikely to be meaningfully replenished, or increases debt and other liability metrics to a level that no longer aligns with the current rating,” the firm wrote in its report.

“We could also lower the rating if the state’s overall wealth and income, employment, and population levels materially trend in a persistently unfavorable direction due to significant weakness in the government sector,” it said.

Such cautions are common from bond rating agencies.

For decades, Maryland enjoyed AAA ratings from all three agencies: Standard & Poor’s gave Maryland its first AAA rating in 1961, followed by Moody’s in 1973 and Fitch in 1993. Those ratings continued every year until this spring, making Maryland one of a handful of states to boast the highest ratings of all three.

Political leaders in the state touted the triple AAA ratings as proof of strong fiscal management. Others said the ratings reflected another reality: a willingness among Maryland’s leaders — mostly Democrats — to raise taxes to pay its debts.

The ratings period this year was more tense. Few acted as if the state was guaranteed the highest ratings of all three, with Moody’s of the most concern.

The firm, in its 2024 report, had reaffirmed its Aaa rating for Maryland, but downgraded the state’s outlook from stable to negative. In March, Moody’s issued a report naming Maryland the state at highest risk for economic problems from Trump administration cuts to federal budgets and jobs.

When the state met with the three firms earlier this month, Moody’s was the only one to schedule an in-person visit. It was attended by the governor, the Senate president and House speaker, an unusual occurrence and an acknowledgement of the seriousness with which state officials were treating the situation.

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State officials said in the days after the meeting that they believed they had addressed the budgetary concerns from the 2024 report.

But within days of that meeting — a quick turnaround that surprised many in state government — Moody’s had downgraded Maryland to Aa1 with a stable outlook. Moody’s appeared to put more weight on federal actions and the reliance of the state’s economy on federal employees, contractors and agencies.

Officials — all Democrats — including Davis, Ferguson, Gov. Wes Moore, Comptroller Brooke Lierman and House Speaker Adrienne Jones issued a joint statement decrying the rating downgrade.

Their statement blamed Republican President Donald Trump, who has focused the first months of his second term on the elimination of federal agencies and draconian budget and employee reductions.

A week ago, Davis, whose office oversees the issuing of bonds, said “to hell with Moody’s,” and implied that the state may no longer need three bond rating reviews . Moody’s — which is paid more than $200,000 annually for its review — was potentially on the chopping block.