Fitch Affirms Fairbanks

Fitch Ratings Friday affirmed its A-plus rating for Fairbanks North Star Borough’s general obligation bonds. The outlook is stable.

The action affects $136.6 million of outstanding bonds, plus the planned sale of $11.1 million of school GOs. The competitive sale is scheduled Tuesday. Bartle Wells Associates is financial adviser.

According to Fitch, the rating reflects the borough’s continued strong financial position, conservative financial management policies, a low debt burden with a high level of state debt-service reimbursement, and strong assessed valuation gains driven by new construction and property improvements.

Those factors are offset by what Fitch describes as a somewhat limited but diversifying economy, heavily driven by natural resources and the military. The Fairbanks area also faces constraints due to its remote location and severe climate, the rating agency said.

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