Posted on: Saturday, May 19, 2001

Maui gets upgraded bond rating for growth, stability

Advertiser Staff

WAILUKU, Maui — The County of Maui has received its best bond ratings ever from national bond-rating agencies Standard & Poor's, Moody's and Fitch, said county Department of Finance Director Wesley Lo.

The upgraded ratings placed Maui County as the highest-rated municipality in the state, along with Honolulu, Lo said.

Standard & Poor's upgraded Maui County's bond rating from "A-plus" to "AA-minus" due to the continued growth of the county's tax base with demonstrated stability through the economic slowdown of the 1990s and sound financial management, Lo said.

Moody's upgraded Maui County's general obligation bond rating to "AA3." Fitch gave the county's general obligation bonds 2001 series a rating of "AA-minus."

"The rating reflects Maui's stable economic performance, strong financial reserves and low debt burden," according to a news release from Fitch. "While the economy is dominated by tourism, diversifying elements are present and expanding."

The new bond ratings will mean a lower borrowing cost for the county for $23 million in bonds that went on the market Thursday.

Mayor James "Kimo" Apa-na said the bonds will be used to finance projects such as the West Maui Senior Center and the acquisition of land for a Kihei regional park.

Correction: A previous version of this story incorrectly stated Maui's County's bond rating from Standard & Poor's.