State of Hawaii

A Moody's Ratings upgrade means Hawaii DOT's airport division is headed to market with across-the-board double-A ratings.

The Aloha State received three rating affirmations as it prepares to sell $750 million of taxable general obligation bonds.

"There's a reason Guam is investment grade," said Muni Credit News Publisher Joseph Krist.

Infrastructure, housing and recovery efforts from the deadly Maui wildfires in August were a focal point of Hawaii Gov. Josh Green's State of the State speech.

Some general fund spending will be shifted to bonds to help the state meet priorities like housing and healthcare, Hawaii Gov. Josh Green announced.

Moody's credited generally sound fiscal practices, good governance and federal aid with the likelihood that Maui County and the state would retain their current credit ratings.

Newly-elected Gov. Josh Green outlined the proposals during his State of the State speech on Monday.

These would be the territory's first general obligation bond issuance since 2019.

The high-grade muni scales saw cuts of up to four basis points in a continued selloff Monday as the market faces a robust slate of new issues.

Both S&P Global Ratings and Moody's Investors Service lifted their outlooks, citing a rebound from pandemic-driven budget pressures.

Hawaii lawmakers made changes to the budget this week in response to a flurry of vetoes from Gov. David Ige.

Hawaii lawmakers approved the budget before Treasury guidance banned the use of federal funds for debt payments or reserves.

Under Hawaii's system, the governor, David Ige, signals his intent to veto and then negotiates with lawmakers before making them formal.

The budget included reduced capital improvement and GO issuance plans over the biennium.

Hawaii's governor announced that state employees would be furloughed two days a month; the state sold $750 million of GO bonds in October to fund operations.

Municipals firmed Friday, with yields falling by as much as two basis points, as coronavirus threats grow and a flight-to-safety resumes.

The current deal deluge is causing a minor yield pullback, but levels have been steadier than many probably thought, trader said.

The coronavirus pandemic took its toll on Hawaii's credit rating Monday as Fitch cuts the Aloha State's GOs to AA. NYC TFA announces $1.1B sale for next week.

The market will digest the once-again largest amount of new issues in 2020, including some higher-grade state GOs that have been quiet of late. Some participants said a back-up in rates could occur after a mostly quiet week.

The state is easing a strict quarantine requirement that has left its all-important tourism industry with very few tourists.