Posted at 11:08 a.m., Wednesday, December 6, 2006
Better bond rating may cut Honolulu's borrowing costs
Advertiser Staff
Standard & Poor's Ratings Services raised its rating on the City and County of Honolulu's general obligation debt one notch to AA from AA-.The ratings agency said the higher designation reflects strengthened financial reserve policies, strong financial performance and increases in taxable property values. The improved rating could translate into lower borrowing costs for the city in the future.
"Formal financial reserve policies were strengthened during fiscal 2006 to provide flexibility in the event of any future decline in revenues driven by fluctuations in tourism activity or a decline in property values," Standard & Poor's credit analyst Rob Williams said in a news release.
