LOS ANGELES — Standard & Poor's upgraded Anchorage, Alaska's general obligation bond rating to AAA from AA-plus.
"The ratings are based on our view of the municipality's strongly improved fund balance position and the continued diversification of the municipality, the economic center of the state, and reflect our recently released local GO criteria," said Standard & Poor's credit analyst Jen Hansen. The outlook is stable.
Other credit strengths include very strong budgetary flexibility, adequate budget performance, very strong liquidity, and very strong management conditions with strong policies.
"The AAA rating will save taxpayers money in the form of reduced interest expense on the bonds that the municipality issues going forward, including the school bonds we anticipate selling this month," said Anchorage Mayor Dan Sullivan in a statement. "This action by S&P continues to demonstrate that investors have the highest level of confidence in the municipality of Anchorage."
The agency had raised the municipality's GO rating to AA-plus from AA ahead of a GO bond issue in September 2012.
Sullivan said the municipality's directors, managers, and employees have established and maintained a "thrifty and fiscally conservative" environment throughout Anchorage.
The upgrade came ahead of the municipality's competitive offering of $40 million of school bonds, which priced on Tuesday.
JPMorgan won the bid with a true interest cost of 3.3306%.
The bonds also carried a AA-plus rating from Fitch Ratings.
Proceeds will finance educational capital improvement projects for the Anchorage School District.
