NEW YORK - S&P Global Ratings said today that its ratings on the State of Maryland (AAA/Stable) are unchanged despite a recent court ruling and pending appeal that introduces project risk to the state's purple line public-private partnership (P3) agreement. S&P Global Ratings believes the state has sufficient liquidity and borrowable resources to meet its estimated obligations under the purple line P3 agreement in the event of a project termination. In addition, our Maryland Department of Transportation (MDOT) ratings are unchanged because the project has no lien on pledged revenues on parity or ahead with MDOT's consolidated transportation bonds.  Following a court ruling that could delay the construction of the project, Maryland has filed an appeal with the federal Circuit Court of Appeals and requested a stay of the ruling. Also, in May, the transportation secretary ordered curtailing some pre-construction costs as the appeal process continues. Although the project has not been terminated as yet, we understand the purple line concessionaire can do so after an extended delay in the project's critical path. Under a termination, the state estimates it would owe $350 million in compensation costs 60 days after the option is exercised.Even in the case of a project termination, S&P Global Ratings believes Maryland has sufficient resources to cover the estimated termination payment. State and department officials represent that sufficient cash is available with the transportation trust fund and borrowable cash with the state treasurer to cover the potential obligation. As of May 31, 2017, the treasurer reported about $6.7 billion in total investment market value across pooled state funds. In addition, S&P Global Ratings believes the state would have sufficient time to amend the budget to make the necessary appropriation for the termination payment. According to (MDOT) officials, the state could accommodate an appropriation of the termination payment within the 60-90 days required under the terms of the agreement, even if the legislature is not in session, through a budget amendment process that typically takes 45-60 days and which could be expedited.  In August 2016, MDOT and Maryland Transit Administration entered into a P3 agreement for a light rail transportation project (the purple line), in which payments due from the department are subject to appropriation by the state.  In late May, a federal district court judge issued a final ruling on a pending lawsuit that ordered a supplemental environmental review and further ridership studies for the purple line project. The ruling delays final environmental approval and MDOT's receipt of $900 million in federal grant money for the project. On financial close of the project last June, we had incorporated the net present value of the milestone payments into the state's net tax-supported debt ratios (see  "How Standard & Poor's Treats Public-Private Partnerships In U.S. State And Local Government Debt Analysis," published Sept. 17, 2015, on RatingsDirect). Should the project fail to move forward, we would adjust the state's debt liability accordingly. (For further information on the state's creditworthiness, see our full rationale report on Maryland, published Feb. 24, 2017.) S&P Global Ratings will continue to monitor the events and progress of the project.  Only a rating committee may determine a rating action and this report does not constitute a rating action.