The recent loss of Maryland’s decades-long and prized AAA Moody’s credit rating could have a lasting ripple effect on future local government budgets. Here’s why.

Maryland has lost its triple-A bond rating from Moody’s. Maryland has held this top rating since 1973, and state officials have long cited it as a sign of state’s strong fiscal stewardship.

Maryland loses its Triple-A bond rating this week. Moody’s downgraded the state’s credit to AAone. They say it’s because of the states “downgrade by economic and financial under performance including the shift in federal policies along with layoffs.