Md. Code Regs. 25.03.04.05

Current through Register Vol. 51, No. 12, June 14, 2024

Section 25.03.04.05 - [Effective until 10/22/2024] Credit Rating

A. A financial officer shall prioritize investing in securities of high credit quality and marketability.

B. All securities shall be reviewed using the numeric and letter grading of the Securities and Exchange Commission's Nationally Recognized Statistical Rating Organizations.

C. Securities permitted by State Finance and Procurement Article, § 6-222(b)(1)(v), Annotated Code of Maryland, shall have:

(1) For maturities of 1 year or less, at least two A-1/P1/F-1 ratings by S&P Global Ratings, Moody's Investors Service, Inc., or Fitch Ratings, respectively; and

(2) For maturities of more than 1 year but less than 5 years, at least two AA/Aa/AA ratings by S&P Global Ratings, Moody's Investors Service, Inc., or Fitch Ratings, respectively.

D. Securities permitted by State Finance and Procurement Article, § 6-222(b)(1)(vi), Annotated Code of Maryland, shall have at least two A-/A3/A-ratings Nationally Recognized Statistical Rating Organizations, one of which shall be either S&P Global Ratings, Moody's Investors Service, Inc., or Fitch Ratings.

E. Commercial paper shall have at least two A-1/P-1/F-1 ratings by S&P Global Ratings, Moody's Investors Service, or Fitch Ratings, respectively.

F. If a catastrophic event occurs that could dramatically shift credit ratings on any of the assets in the portfolio, the State Treasurer may:

(1) Make investment decisions inconsistent with this chapter that are in the best interest of the State; and

(2) Approve in writing a request from a local government unit to make investment decisions inconsistent with this chapter.

Md. Code Regs. 25.03.04.05

Regulation .05 adopted effective 51:11 Md. R. 577, effective 4/25/2024, exp. 10/22/2024 (Emergency).