The bond sale follows an upgrade of the state's general obligation bond rating to AA from AA- with a stable outlook by Standard & Poor's Rating Service. In upgrading the state's credit, Standard & Poor's said that "The stable outlook reflects the very strong revenue growth and statewide economic trends, which have allowed the state to strengthen its financial position, as well as prudent management of surpluses within the constraints of the state constitution."

Moody's Investors Service and Fitch Ratings reaffirmed the state's rating at Aa2 and AA, respectively, with "stable" outlooks on the credit. Moody's cited in their rating report that "The stable outlook for Hawai'i's credit rating reflects the state's strong management of its finances given the volatility of its tourism-based economy."

"The rating upgrade by Standard & Poor's reflects the strength of the statewide economy and this administration's commitment to prudent financial management and fiscal discipline," Lingle said in a news release.

"With the recent ratings upgrade to AA by Standard & Poor's, the state's rating has now been upgraded within the past two years to its highest levels ever by all three rating agencies."

Retail demand for Hawai'i's bonds was extremely strong both nationally and at the state level, with a record $57.8 million of bonds purchased during the initial retail order period. The strong retail response was followed by equally strong participation from a broad array of institutional investors. These investors included insurance companies, banks and various investment funds.