Moody’s Investors Service has affirmed its Aa2 rating on $4.9 billion of Hawaii’s general obligation bonds.
The agency also affirmed its Aa3 rating on $62 million of the state’s certificates of participation. Both outlooks are stable.
Moody’s said the GO bond rating is a result of Hawaii’s improving finances following lower revenues due to the recession.
However, Moody’s analysts also noted Hawaii’s low pension-funded ratios and growing costs for other post-employment benefits, as well as high debt ratios.
The agency said the state’s “vital” tourism industry continues to show signs of improvement.
Moody’s analysts said they expected ongoing revenue growth for the state, a continued rebound in tourism, less reliance on one-time fixes to balance its spending plan and proactive measures to improve the funding of its retirement system.
