Bangkok--22 Nov--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA' long-term rating to Honolulu City and County, Hawaii's $151.685 million series 2010A general obligation (GO) bonds (Build America Bonds, or BABs), $187.83 million series 2010B GO bonds, and $120.27 million series 2010C GO bonds. At the same time, Standard & Poor's affirmed its 'AA' long-term rating and underlying rating (SPUR) on the city and county's outstanding GO debt. The outlook on all ratings is stable.
"The ratings reflect our view of the city and county's role as the main service, trade, and government center in Hawaii; enduring employment market and tourism sector that have been relatively resilient and nimble to rebound from periods of economic weakness; strong general fund financial performance and reserve levels; property tax rate flexibility; and low-to-moderate debt burden," said Standard & Poor's credit analyst Paul Dyson.
The series 2010A bonds are being issued to fund ongoing capital improvement program needs and to take out $50 million in outstanding commercial paper. The series 2010B bonds are being issued to fund the expansion of Honolulu's H-Power solid waste disposal facility. Net operating revenues from the facility will be used to reimburse the city and county's general fund for related debt service (self-supporting). The series 2010C bonds are being issued to refund various outstanding GO bonds for savings.
The City and County of Honolulu covers the entire island of Oahu and has 907,574 residents, or about 70% of the state's total population. Honolulu is Hawaii's primary economic center as well as the state's center of government, transportation, finance, and education.
The stable outlook reflects Honolulu's position as the economic center of the state as well as its generally strong and resilient employment market and tourism sector, despite recent softness. The stable outlook further reflects our expectation that the county will manage its financial performance and reserves as it copes with a period of slower economic growth.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: Key General Obligation Ratio Credit Ranges — Analysis Vs. Reality, April 2, 2008
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Misty Newland, San Francisco (1) 415-371-5073