Wednesday, February 8, 2023
Hawai'i Free Press

Current Articles | Archives

Tuesday, May 17, 2011
Moody’s Cuts Hawaii’s Bond Rating
By Selected News Articles @ 11:35 AM :: 5579 Views :: Energy, Environment

Moody's Cuts Hawaii's Bond Rating A Notch On Finances, Economy

DOW JONES NEWSWIRES  

Moody's Investors Service on Tuesday downgraded its bond rating on Hawaii, saying the state's sustained recession and one-time budget fixes are straining the government's finances.

Moody's rates Hawaii's general obligation bonds at Aa2, the third-highest credit rating. Its outlook is stable.

State revenue has been threatened for years by the overall economy, which suffered acutely during the recession after tourism slumped. Despite recent signs of improvement in that vital industry, the state warned in a special March forecast that natural disasters in Japan, higher oil prices and the state's decision to delay paying fiscal 2010 tax refunds until fiscal 2011 would further pressure the economy.

Moody's justified the downgrade based on the state's forecast depletion of reserve funds by the end of the 2011 fiscal year, sustained budget shortfalls relieved by one-time solutions and low pension-funded ratios relative to other states. Hawaii's audited financial results have also come in late since fiscal 2007, a trend the ratings agency said contrasts with the state's other good-governance policies.

---30---

Democrat One-Party Rule Responsible for Moody's Downgrade: Abercrombie's 'New Day' results in a very bad day for Hawaii

The Hawaii Republican Party reacted to today's decision by the leading credit agency Moody's to downgrade the State of Hawaii's general obligation bonds.

"Today's decision by Moody's is the result of one-party rule and continued reckless fiscal behavior by Hawaii's Democrats. The Abercrombie administration has shown a near total lack of leadership in guiding our state and the Democrat controlled legislature is equally complicit in the financial mismanagement of our government. Although many of the economic challenges outlined in this report began during the previous administration, Governor Lingle's responsible fiscal management preserved Hawaii's Aa1 bond rating," said Jonah Kaauwai, Hawaii GOP Chair. "Hawaii deserves better. Today's downgrade of our state's bonds by Moody's is yet another clear indication as to why we must change our political leadership in the 2012 elections."

The decision by Moody's will likely result in higher interest rates and borrowing costs for Hawaii. This will further exacerbate the fiscal problems Hawaii is already in.

###

The Bond Buyer: Hawaii Cut to Aa2 by Moody’s

LINK: Moody’s

PRECISELY AS PREDICTED:

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT