Today Kroll Bond Rating Agency assigned State of Alaska General Obligation Bonds an AA rating with a stable outlook.
The rating increase reflects the State’s strong underlying credit profile, including ample reserve balances and direct liquidity available to support budgetary operations, as well as a robust natural resource base which continues to serve as a key economic driver of the State.
Investors utilize credit agency ratings to gauge the State’s financial strength and the desirability of its debt. The rating indicates that KBRA deems the State of Alaska’s creditworthiness is very high quality.
“The rating increase to the State’s credit profile is a vote of confidence in the work we’ve done to manage the State’s finances. Disciplined financial policies and practices throughout my administration and the support of the legislature have reassured the credit rating agency of Alaska’s financial strength,” said Governor Mike Dunleavy. “This rating upgrade is yet another indication that the financial sector is taking notice that Alaska is open for business as we continue to responsibly develop our natural resources which are essential for the energy transition and establish Alaska as the global economic hub of the Pacific basin.”
The State’s Department of Revenue Commissioner, Adam Crum, noted the positive impact of Kroll’s rating on the State’s finances and overall reputation: “To secure a rating increase to AA is a significant achievement and a win for the State, and is indicative of the State’s positive standing in the financial markets. Our favorable rating has yielded positive results, which will enable the State to obtain favorable interest rates in future bond deals and attract new investments in our great State.”