American Samoa affirmed at Ba3 with stable outlook by Moody's

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American Samoa's issuer rating and its general revenue bonds were affirmed at Ba3 with a stable outlook by Moody's Ratings on Thursday. 

Moody's noted the federal government gives the territory generous operating and capital assistance, which has enabled the local government to maintain a solid financial position. 

The local government's fund balance declined to 34.5% of own-source revenue in fiscal 2024 from 40.3% in fiscal 2023 but was higher than in fiscal 2021. 

The territory's small and volatile economy with employment concentrated in government and tuna packing, very low resident income levels, high long-term liabilities and fixed costs, and risks associated with operating a government-owned charter bank were cited as negatives by the rating agency.

Moody's also noted the island's exposure to physical climate risks including sea level rise. 

American Samoa had $122.5 million in general revenue bonds outstanding as of fiscal 2024, according to Moody's.

Of the island government's debt, the central government holds 94%, according to the U.S. General Accountability Office's "U.S. Territories: Public Debt and Economic Outlook – 2025 Update."

The territory had $168 million in pension liabilities as of the end of fiscal 2023, according to the GAO report. In 2022, the local government passed a law to increase contributions to pensions.