Credit rating agencies see improved outlook for Alaska, but note risks from budget uncertainty
As Alaska lawmakers decide what to do about the budget, one group that’s keeping an eye on the outcome are the agencies that rate the state’s ability to pay off its debts. As the budget situation worsened in recent years, the agencies downgraded the state’s credit rating 10 times between 2016 and 2020.
But the rating agencies see improvement in Alaska’s outlook.
The past year has seen oil prices stabilize. And investment growth has added to the Alaska Permanent Fund.
Edward Hampton said both are good news for the state budget. He’s analyzed Alaska’s finances since Sarah Palin was governor. And he worked on a Moody’s Investors Service report in April that revised the outlook for Alaska’s credit rating from negative to stable.
“Alaska is a state that is adjusting to a new approach to the oil industry,” he said. “And a big part of that is being able to rely on the permanent fund’s earnings in a systematic way.”
Read more: https://www.alaskapublic.org/2021/06/15/credit-rating-agencies-see-improved-outlook-for-alaska-but-note-risks-from-budget-uncertainty/