Alaska Municipal Bond Bank Authority – G.O. Rating Report

Rating Summary

The general obligation (G.O.) bond rating for the Alaska Municipal Bond Bank Authority (the Authority) is based on the underlying credit fundamentals of the State of Alaska (the State), the essentiality of the Authority in financing the capital needs of local governments, and the State’s standing appropriation provision and moral obligation to replenish debt service reserve fund (DSRF) draws through both a discretionary replenishment provision and the requirement to intercept State Aid payments available to borrowers to cure loan payment deficiencies. The rating is underpinned by the Authority’s requirement to annually report reserve fund sufficiency and to initiate a budgetary request for appropriations from the State Legislature to replenish the reserve fund, if necessary. KBRA views these support mechanisms as akin to a State annual appropriation backstop, therefore warranting a one-step rating differential relative to the State’s G.O. rating.

Proceeds of the…