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The Honolulu Advertiser
Posted on: Tuesday, February 2, 2010

Fitch gives 'AA' rating to upcoming $534M state bond issue

Advertiser Staff

Fitch Ratings has assigned an AA rating to the state of Hawaiis upcoming $534 million general obligation bond sale, saying the state has sound financial operations and has demonstrated a willingness to maintain budgetary balance under stressful conditions.

The ratings apply to $312 million of general obligation bonds that will be used to finance public improvement projects and up to $30 million toward the fiscal 2010 Hawaiian Home Lands settlement payment, Fitch said.
Another $222.3 million is being issued to retire bonds sold at a higher interest rate. The sale is expected to be completed through a negotiated transaction on Feb. 10, Fitch said.
The ratings agency also assigned the state a negative outlook because of financial problems the state is experiencing with an economic downturn.