State’s credit rating is stable again

Standard and Poor’s Global Ratings have revised Alaska’s credit rating outlook from negative to stable and reviewed and affirmed the state’s general obligation bond rating of AA-, boosting optimism on the state’s economic outlook.

The May 5 revision of the outlook was supported by the rating agency’s expectation of improved fiscal performance in the near term as oil-related revenue stabilizes and improved equity performance adds to reserves available in the state’s Earnings Reserve Account, according to Gov. Mike Dunleavy.

In a separate credit rating release, Fitch ratings revised the Alaska International Airport System’s revenue bond rating outlook to stable from negative and affirmed the AIAS’s A+ rating.  The novel coronavirus pandemic has severely impacted the airport sector with declines of up to 80% in passenger traffic and associated loss of revenue. Meanwhile AIAS has a vibrant cargo market which has surged in fiscal year 2021, balancing pandemic-related declines in passenger enplanements, the governor’s office said.

Lying on the great circle route that is equally distanced from Asia and the continental U.S. allows freighters that stop in Anchorage to carry significantly more cargo combined with the ability to sort and re-plane cargo for delivery to multiple Lower 48-locations, creating significant economic impact on Anchorage and related jobs, the governor’s office said.