Press Release|Public Finance
KBRA Assigns AA Rating to Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds, 2025 Series Three; Affirms Related Ratings
26 Jun 2025 | New York
KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds, 2025 Series Three. KBRA also affirms the long-term rating of AA for the Authority's outstanding General Obligation Bonds.
KBRA additionally affirms the long-term rating of AA+ for the State of Alaska's General Obligation Bonds as well as the long-term rating of AA for the State's Appropriation Bonds.
The rating Outlook for each obligation is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Essentiality of underlying loans for local government financing needs and mechanisms for State support of Authority Bonds.
- History of full and timely payment of Authority Bonds without reserve draws or State support.
- Precautionary appropriation by the State each year since 2009 to replenish Authority DSRFs in the event of draws.
Credit Challenges
- State support payment backstop mechanism is a moral obligation pledge, though the standing appropriation for reserve replenishment and other features mitigate this risk.
Rating Sensitivities
For Upgrade
- Upgrade of the State GO rating.
For Downgrade
- Downgrade of the State GO rating.
- Failure of the Legislature to proactively provide the Authority its annual standing appropriation for reserve replenishment.
To access ratings and relevant documents, click here.