Fitch Ratings has assigned an "AA" rating to an upcoming state of Hawai'i bond issue, citing the state's sound financial operations and conservative budgetary procedures.

The rating applies to about $375 million of general obligation bonds that are expected to be sold in early May. Fitch also affirmed its AA rating on Hawai'i's $4.3 billion of outstanding general obligation bounds and said the ratings outlook is stable.

Fitch noted Hawai'i's well-developed tourism industry has been healthy and that the large military presence and recent employment growth in professional and medical services has added some diversification to the economy.

However, it noted rising fuel costs and weakening consumer spending could weigh negatively on the visitor industry.