Kroll Bond Rating Agency upgraded Alaska's general obligation bond rating to AA-plus from AA Tuesday. The outlook is stable.
The rating agency cited the state's ample reserves and direct liquidity available to support budgetary operations; robust natural resource base; and critical role in U.S. strategic interests based on its mineral reserves and geographic position that "anchors significant defense-related economic activity and continuing federal support."
The upgrade comes in connection with plans to sell Matanuska-Susitna Borough State of Alaska lease revenue refunding bonds for the Goose Creek Correctional Center Project. Those bonds, notched
KBRA also upgraded Alaska Municipal Bond Bank Authority GO bonds to AA from AA-minus.
S&P Global Ratings Wednesday affirmed Alaska at AA and rated the $99.5 million of refunding bonds for the prison AA-minus, based on the state's rating.
"We rate the bonds one notch off of Alaska's general creditworthiness, as reflected in the 'AA-minus' issuer credit rating, based on our consideration of the appropriation risk associated with the lease payment under our criteria," analyst Thomas Zemetis said in a news release.
The Matanuska-Susitna Borough sold the original $244.3 million of
The refunding bonds are expected to come in a $49.7 million series 2025A and an approximately $49.9 million 2025B forward delivery series.
Moody's Tuesday rated the revenue bond refunding for the prison A1, notched off its Aa3 rating for the state government.
Fitch Ratings in November revised to positive its outlook for Alaska's A-plus issuer default rating.
