KBRA Assigns AA Rating to Alaska Municipal Bond Bank Authority GO and Refunding Bonds 2025 Series One (Non-AMT) and 2025 Series Two (AMT); Affirms Related Ratings
12 Mar 2025 | New York
KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds 2025 Series One (Non-AMT) and 2025 Series Two (AMT). KBRA also affirms the long-term rating of AA for the Authority's outstanding General Obligation Bonds.
KBRA additionally affirms the long-term rating of AA+ for the State of Alaska's General Obligation Bonds as well as the long-term rating of AA for the Matanuska-Susitna Borough State of Alaska Lease Revenue Refunding Bonds Series 2025A and Series 2025B (Forward Delivery) (Goose Creek Correctional Center Project).
The rating Outlook for each obligation is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Essentiality of underlying loans for local government financing needs and mechanisms for State support of Authority Bonds provide basis for rating one step below the State GO rating.
- Unblemished history of full and timely payment of Authority Bonds without reserve draws or State support.
- Precautionary appropriation by the State each year since 2009 to replenish Authority DSRFs in the event of draws that may arise makes the State’s moral obligation more akin to that of an annual appropriation pledge.
Credit Challenges
- Sensitivity of loan repayments to the credit quality of underlying loan borrowers, which currently consist of approximately 36 local government entities.
Rating Sensitivities
For Upgrade
- Upgrade of the State GO rating.
For Downgrade
- Downgrade of the State GO rating.
- Failure of the Legislature to proactively provide the Authority its annual standing appropriation for reserve replenishment.
To access ratings and relevant documents, click here.