The Hawai'i Department of Transportation (HDOT) announced that Moody's Investors Service has upgraded the bond rating for the state's Airports System from A1 to Aa3, the highest rating in its history. This comes ahead of a bond issuance on Thursday next week, aiming to secure $600 million for capital projects and $200 million for refinancing existing debt to reduce interest costs.
According to the announcement, Moody's upgrade praises the Airports System for strong passenger traffic, Hawai'i's stable economy, and the ongoing appeal of the islands as a major tourism destination, despite challenges like the pandemic and Maui wildfires. The system’s solid financial management was also highlighted for maintaining "strong and stable finances." Other agencies, S&P Global Ratings and Fitch Ratings, have maintained their ratings at AA-, reflecting confidence in the system’s financial health.
Hawai'i Governor Josh Green, M.D., welcomed the upgrade as a sign of the state’s sound investment and financial management. "The state has been investing in Hawai‘i’s airports to modernize our facilities and improve the passenger experience, and this rating upgrade is a testament to the state’s ability to pursue these investments prudently, in a financially responsible manner," he said in the Hawai'i Department of Transportation announcement.
HDOT Director Ed Sniffen pointed out that the government has committed to a $2.5 billion capital program through 2031. The program includes runway repairs, terminal renovations, security upgrades, and new facilities to improve the functionality and safety of airports. Recent developments include the opening of the Mauka Concourse and a Federal Inspection Station Facility.
Director Sniffen, along with other senior state officials, led discussions with the bond rating agencies that resulted in Moody's positive reevaluation. "The successful rating review and upgrade by Moody’s reflects the confidence the bond market has in the Airports System and how we manage our program and finances," Sniffen said. The Moody's upgrade is expected to lower borrowing costs for the upcoming bond issuance, as per the Hawai'i Department of Transportation website.
.jpg){kind=link}