S&P Global Ratings said it raised its long-term rating and underlying rating to AA-minus from A-plus on Hawaii's harbor system revenue bonds issued for Hawaii Harbor Division.
The outlook is stable.
"The rating action reflects our view of the harbor division's historical willingness to make ample tariff increases to support rising operating costs, debt service, and capital needs, and the division's maintenance of very strong coverage and exceptional liquidity in recent years," said S&P credit analyst Paul Dyson.
The stable outlook reflects the rating agency's anticipation that the capital program will not pressure the cost structure significantly more than forecast by management, that liquidity may decline but remain at levels it considers very strong, that debt service coverage will be remain near current levels, and that volume will not significantly deteriorate.
