JUNEAU –Governor Bill Walker and Department of Revenue Commissioner Randall Hoffbeck today announced that the State of Alaska has received three separate AAA bond ratings from Moody’s Investor’s Service, Standard & Poor’s and Fitch Ratings. The announcements come after the bond rating agencies met in February with Governor Walker, Commissioner Hoffbeck and staff members of Departments of Natural Resources and Revenue. The meetings addressed growing concerns about Alaska’s declining oil revenue.
“This is excellent news,” Governor Walker said. “Three separate agencies have each given Alaska a triple-A bond rating, which will provide the state with unparalleled access to funding for future capital projects. I look forward to the opportunities this news will provide us in the years to come.”
A rating of AAA is the highest grade assigned by credit rating agencies. It is given to entities with an exceptional degree of creditworthiness, with little risk of loan default. As a result, Alaska will receive some of the lowest interest rates available when issuing or refinancing its bonds, saving the state millions of dollars in the coming years.
“Developing Alaska’s natural gas resources is one of the top priorities of this administration,” said Governor Walker. “Securing these bond ratings will help see such projects to fruition by attracting potential investors and allowing Alaska to get the biggest bang for its buck. I also want to thank past leaders, who had the wisdom to create large reserve funds—without which we could not have secured these coveted ratings.”
On March 10, the state is scheduled to sell its Series 2015A $162.7 million general obligation bond anticipation note to refinance its Series 2014A bond anticipation notes. In addition, on March 26 the state is scheduled to sell approximately $100 million of its Series 2015B general obligation bonds to refinance its Series 2009A general obligation bonds, saving the state an estimated $9 million in future interest costs.