KBRA Assigns AA Rating to Alaska Municipal Bond Bank Authority GO and Refunding Bonds 2025 Series One (Non-AMT) and 2025 Series Two (AMT); Affirms Related Ratings

KBRA assigns a long-term rating of AA to the Alaska Municipal Bond Bank Authority General Obligation and Refunding Bonds 2025 Series One (Non-AMT) and 2025 Series Two (AMT). 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 Matanuska-Susitna Borough State of Alaska Lease Revenue Refunding Bonds Series 2025A and Series 2025B (Forward Delivery) (Goose Creek Correctional Center Project).

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 provide basis for rating one step below the State GO rating.
• Unblemished 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 that may arise makes the State’s moral obligation more akin to that of an annual appropriation pledge.

Credit Challenges

• Sensitivity of loan repayments to the credit quality of underlying loan borrowers, which currently consist of approximately 36 local government entities.

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.

Methodologies

• Public Finance: U.S. State Annual Appropriation Obligation Rating Methodology
• Public Finance: U.S. State General Obligation Rating Methodology
• ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1008519

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