Honolulu bonds get good rating

By Howard Dicus - bio | email

HONOLULU and SAN FRANCISCO (HawaiiNewsNow) - Fitch Ratings has assigned a favorable AA+ rating to a bond sale planned for next week by the City & County of Honolulu.

"The city's financial position remains sound, with healthy fund balance levels and stable revenues," Fitch said in a statement Thursday from its San Francisco office.

The credit rating agency noted the volatility of Hawaii's tourism market and the city's own pension liabilities, but said the city has a dependable revenue source from property taxes.

Fitch said "financial operations are sound" as the city's unreserved fund balance has risen to 8.3 percent, $104 million, and should rise to $117 million in the new fiscal cycle.

The rating applies to $137.6 million series 2011A and $175.1 million series 2011B bonds to be sold next week in support of capital projects and refinancing older general obligation issue.

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