FOR IMMEDIATE RELEASE

25-002

Kroll Upgrades State of Alaska Bond Rating to AA+

Highest Bond Rating Since 2016

Monday, March 3, 2025 (Anchorage, AK) – On February 25, 2025, Kroll Bond Rating Agency (KBRA) upgraded the State of Alaska General Obligation Bonds to a rating of AA+ with a stable outlook. The rating increase reflects the State’s strong financial position and underlying credit profile, including ample reserve held in the State’s Permanent Fund and Constitutional Budget Reserve Fund, the direct liquidity available to support budgetary operations; robust natural resource base which continues to serve as a key economic driver of the State; and a critical role in U.S. strategic interests deriving from the State’s vast mineral reserves and its position relative to geopolitical competitors, anchors significant defense-related economic activity and continuing federal support.

Alaska is resilient and has a longstanding history of developing structure, enacting laws, and implementing budget policies to strengthen and protect the financial health of the State.

Credit agency ratings are utilized by investors to gauge the State’s financial strength and the desirability of its debt. The AA+ rating is one notch lower than a AAA rating.

Governor Mike Dunleavy explained the importance of the State’s bond rating increase, “The rating increase of the State’s credit profile is a clear indication that Alaska is making a strong headway in the financial markets. With the continued support of President Trump and the Alaska federal delegation, Alaska is positioned to transition into a global economic hub. My administration and I will accelerate our efforts in bringing the Alaska LNG Project to fruition in an effort to lower energy prices for Alaskans, creating jobs throughout State, supporting our Asian allies and creating economic opportunities for new investments and industry sectors such as data farms. I want to thank Commissioner Crum and Deputy Commissioner Limani for their unwavering commitment in improving Alaska’s credit rating outlook.”

“To secure a rating increase of AA+ is a significant achievement and a big win for our State. We have been very active in the bond markets over the last two years and Alaska’s paper has a scarcity value and a lot of investors want to get their hands on our bonds,” said Revenue Commissioner Adam Crum. “The favorable rating has continued to yield positive results and will enable the State to obtain favorable interest rates in future bond deals.”

Revenue Deputy Commissioner, Fadil Limani, noted the positive impact of Kroll’s rating on the State’s finances and overall reputation: “Ever since stepping into this role, one of the main objectives for Commissioner Crum and I have been to enhance and improve the State’s Credit Rating outlook, given the State’s unique economic and financial profile. Over the last two years, we have successfully been able to see seven rating improvements. More importantly, in the last nine months, we have undertaken more than four bond refunding transactions ($430 million in par amount) including of bond tendering and forward delivery that has resulted in $30 million in net present value savings to the State’s debt obligations. We are in the process of refinancing an additional three transactions ($300 million in par amount) between now and June 2025, that is expected to yield $15-18 million in additional savings to the State and the underlying communities participating in the Alaska Municipal Bond Bank Program, based on current market conditions.”

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Media Contact: Aimee Bushnell, (907)465-6829, aimee.bushnell@alaska.gov