LOS ANGELES — Hawaii received a second upgrade from a major rating agency ahead of plans to issue $757 million in general obligation bonds on Sept. 26.
Moody's Investors Service upgraded Hawaii's GO bonds to Aa1 from Aa2 Wednesday. The outlook is stable.
Moody's also raised the rating on Hawaii's 2009 certificates of participation to Aa2 from Aa3.
Following the sale, the state will have approximately $6.4 billion general obligation bonds outstanding.
"The upgrade reflects the state's positive economic and revenue trends, the restoration and maintenance of sizable reserves, and proactive measures to improve the funding of its pension and OPEB liabilities," according to Moody's analysts.
The stable outlook reflects the expectation that the state will maintain strong reserves while continuing to make planned progress in funding its pension and OPEB liabilities, Moody's analysts wrote.
S&P Global Ratings on Monday raised to AA-plus from AA Hawaii's general obligation bonds and upgraded to AA from AA-minus its long-term rating on the state's certificates of participation. It assigns a stable outlook on all the state's debt ratings. Fitch affirmed its AA rating on the state's GO bonds with a stable outlook ahead of the sale.
