HAWAI`I EARNS STRONG CREDIT RATINGS

For Immediate Release:  February 17, 2006

HONOLULU – Governor Linda Lingle announced today that Fitch Ratings has assigned an AA rating to the State of Hawai`i’s planned $350 million general obligation bond sale and upgraded the rating of approximately $4.1 billion in outstanding general obligation bonds to AA from AA-. 

“The positive ratings reflect investor confidence in Hawai`i’s strengthening economy, as well as the state’s overall long-term economic policies and fiscal management,” said Governor Lingle.  “When we met with the bond raters earlier this month, they were encouraged by the state’s strong revenue outlook and the approach we are taking to maintain fiscal discipline and effectively manage our resources.”

In announcing its Hawai`i rating, Fitch Ratings said, “The upgrade to ‘AA’ is based on the increasing strength of Hawai`i’s economy, which has led to stellar revenue growth and very large fund balances.  Financial operations have been maintained soundly, even under stressful periods, and budgetary procedures are conservative.”

Fitch Ratings also cited the financial balances, which have “improved and have been retained following a difficult period in fiscal 2001-2003, when revenues fell short and balances were reduced.”

The proceeds from the new money bond sale will be used for improvements to public buildings and facilities including elementary and secondary schools, community college and university facilities, public libraries and other public purposes.

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For more information, contact:
Georgina Kawamura         
Director, Budget & Finance         
Phone: 586-1518

Lenny Klompus
Senior Advisor – Communications
Phone: 586-7708

Russell Pang
Chief of Media Relations
Phone: 586-0043