The Alaska Department of Revenue announced that the State of Alaska’s bond rating has been upgraded once again to AAA, the highest grade, by Fitch Ratings.
This is the third AAA rating in the state’s history, reflecting the state’s practice of maintaining exceptionally large reserves, extensive fiscal flexibility, and despite its deep financial resources, budgetary restraint.
Moody’s Investors Service upgraded Alaska to AAA in 2010 and Standard and Poor’s upgraded the state to AAA in 2012.
Governor Sean Parnell said that, “with another Triple-A bond rating, more than $16 billion in budget reserves, and more than $44 billion in the Permanent Fund – Alaska is solid,”
Parnell added, that the state is, “paying down what has been defined as unfunded liabilities, and we’ve been named the sixth best-run state in the nation. Our responsible and responsive approach will keep Alaska on solid footing for years to come.”
Revenue Commissioner Bryan Butcher, who met with Fitch in December, said, “We spent quite a bit of time discussing our improved approach to the oil production forecast as part of the state’s more conservative fiscal management. We also talked to the rating agencies about the reasons why proposing changes to the oil tax structure to become more competitive makes sense now so a brighter future could be realized for Alaskans.”