Hawaii’s double-A bond ratings received two affirmations this week as the island state prepares to sell at least $400 million of bonds.

Moody’s Investors Service affirmed its Aa2 rating on Hawaii GOs Monday and Standard & Poor’s affirmed its AA rating Wednesday. Both assign a stable outlook.

“The rating is based on the state’s growing and diversifying economy, which continues to rely on tourism and land development, and its sustained — though likely mature — expansionary phase, which mitigates average wealth and income indicators,” Standard & Poor’s credit analyst Rob Williams said in a statement. “Strong recent revenue trends have led to significantly improved financial performance and reserves.”

Hawaii’s strengths are tempered by the state’s high debt burden and the low-funded status of its retirement system, the agency said.

Citi was chosen to lead the $400 million new-money bond sale, according to the state’s procurement Web site. Officials are also planning a $27 million refunding series, according to Moody’s.

Fitch Ratings assigned Hawaii its AA rating before the state’s last GO issue in 2007.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.