SAN FRANCISCO - The Alaska Municipal Bond Bank Authority is planning to sell $43 million of AA plus-rated general obligation bonds for the cities of Ketchikan and King Cove.
The bank is a public corporation established to help Alaska municipalities to finance capital improvement projects by selling bonds in the tax-exempt market and using proceeds to make loans.
From this bond sale, the bank will loan a portion of the proceeds to Ketchikan, in southeastern Alaska, to fund an expansion to its Ketchikan Medical Center.
The city will also use the funds for the construction and installation of two replacement floats for its mooring facilities at Bar Harbor.
The bank will loan another portion of the proceeds to King Cove, on the pacific side of the Alaska Peninsula. The city will use the loan to fund electric system improvements and to retire a loan from the U.S. Department of Agriculture.
The bank's bonds are rated AA-plus, with stable outlooks, by both Standard & Poor's and Fitch Ratings.
"The ratings reflect our view of the strength of the appropriation pledge and legislature's demonstrated commitment to including the appropriation in the state's annual operating budget," said Standard & Poor's credit analyst Gabriel Petek.
The bank benefits from credit support from the state of Alaska, rated AAA by both agencies, with stable outlooks.
Fitch also notes the state's annual appropriation as a credit strength, as well as the state's proven support and strong repayment history with the bond bank.
The bonds are expected to be sold in a competitive offering on June 10.
