Hawai'i long-term bond rating drops

Advertiser Staff

International credit rating company Fitch today said it changed its long-term rating outlook for Hawai'i airport system to "negative" from "stable" because of the state's decision to waive landing fees and the drop-in air traffic from Japan.

Fitch rates companies and government entities based on their ability to repay bonds they issue. A lower rating could increase the cost of borrowing.

While warning about the outlook, Fitch also said it affirmed the airport system's 'A' rating for $837 million in revenue bonds.

The 'A' rating is five notches below Fitch's top "AAA" rating and five above a junk bond rating.