In the latest installment of Muni Minute The Bond Buyer's 60-second video series that examines a top municipal market story that will have an impact in the coming week we look at the state of Hawaii, which is selling over $675 million of general obligation bonds in the wake of two credit rating upgrades, improvements in its fiscal position and a self-reported disclosure failing under MCDC.
VOICE OVER: The state of Hawaii is saying Aloha to the MUNI Market this week. Fresh off two credit rating upgrades, Hawaii is selling over $675 million of general obligation and refunding bonds. Citigroup will price the bonds after Moody's raised the island's GOs to AA1 and S&P upped the debt to AA-plus. Fitch kept Hawaii's rating at AA. All three agencies assign a stable outlook to the bonds.
The good news came after the state self-reported disclosure violations to the SEC, under the Municipalities Continuing Disclosure Cooperation initiative. Hawaii officials said, they will upgrade their old accounting system to make sure the problems won't happen again. Hawaii and Minnesota were the only two states which self-reported failures under MCDC. Moody's said its upgrade reflected positive economic and revenue trends. S&P said its upgrade reflected Hawaii's strengthened fiscal position.
Fitch added the state may benefit from consolidation of U.S. Military activity in the Pacific. I'm Chip Warnett, this is a Muni Minute.