STATE'S CREDIT RATING UPGRADED TO "AA" BY STANDARD AND POOR'S RATINGS SERVICE

For Immediate Release:  February 1, 2007

HONOLULU – Governor Linda Lingle announced today that the State of Hawai‘i’s general obligation bond credit rating was upgraded to “AA” from “AA-” by Standard & Poor’s Ratings Service.  In upgrading the state’s credit rating, Standard & Poor’s cited the state’s tremendous progress in achieving financial stability through prudent management. 

“After a dip in financial condition in the early part of the decade, the state’s fiscal condition is now on solid footing, with audited reserves at historically high levels,” Standard & Poor’s stated.   “Importantly, the state’s economy continues to show indications of gradual diversification as measured by composition of total state earnings.” 

The rating agency noted that the combination of strong management, sound financial profile and long-term economic growth supports the higher rating.

“I am very pleased by the action taken by Standard & Poor’s Ratings Service to raise the state’s credit rating to ‘AA’,” said Governor Lingle.  “With this upgrade, the state’s bond ratings are the highest in the state’s history and will result in lowering borrowing cost for the state.” 

The State’s general obligation bonds are also rated “AA” by Fitch Ratings and “Aa2” by Moody’s Investor Service.  Collectively, the state’s general obligation bond ratings are among one of the highest categories assigned to local municipalities and state governments.

####

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

Lenny Klompus
Senior Advisor – Communications
Phone:  586-7708

Russell Pang
Chief of Media Relations
Phone: 586-0043