Alaska’s Credit Rating Outlook Improves
Moody’s Investors Service has lifted the State of Alaska’s credit rating outlook to stable and reviewed and affirmed the State of Alaska’s general obligation bond rating of Aaa3.
The rating agency stated Alaska is expected to meet its funding obligations for the state operating budget using moderate and sustainable draws on the Permanent Fund’s Earnings Reserve Account combined with oil production and other revenue.
“The decision by Moody’s to raise Alaska’s credit rating is an indication that Alaska’s economy is heading towards a recovery phase,” says Governor Mike Dunleavy. “We can continue down the path of recovery and prosperity if Alaskans come together on a fair and sustainable budget plan that includes a constitutional amendment protecting the permanent fund dividend.”
“It is gratifying to have Moody’s recognize the positive revenue effects of stabilizing oil prices combined with the ability to fund the operating budget partly using earnings of the Permanent Fund,” says Alaska Department of Revenue Commissioner Lucinda Mahoney. “I believe that this could be the first step in the State pursuing a path to rebuilding our credit strength.”
In This Issue
Meeting in the Middle
In January, when the Biden administration announced its ban on the future sale of oil and gas leases on federal land, the news understandably ruffled the collective feathers of Alaska’s oil and gas industry.