Fitch Ratings revised the outlook on the State of Alaska to stable from negative and affirmed its A+ rating on the state’s general obligation bonds. Fitch has also revised the outlook to stable from negative, and affirmed its ‘A’ rating, on state appropriation and Alaska Municipal Bond Bank Authority bonds.
This is the second improvement to outlook by credit rating agencies within the last 30 days, reflecting capacity to replenish budgetary reserves driven by rising energy prices and the structured draw on the Earnings Reserve Account of the Permanent Fund.
Ratings for Alaska from the major ratings agencies are:
- Moody’s Investors Service: Aa3.
- Fitch Ratings: A+
- S&P Global Ratings: AA-
“I remain encouraged with the recent credit outlook improvements but want to continue to advocate for long-term fiscal restraint in the face of heightened energy prices. We remain cognizant of energy price volatility and want to ensure we’re prepared for the future with sustainable management of the state’s reserves,” said Alaska Department of Revenue Commissioner Lucinda Mahoney.
