Moody's: Rejection of Ballot Measure 1 'positive' for Alaska's credit

[unhappycamper]

http://www.adn.com/article/20140902/moodys-rejection-ballot-measure-1-positive-alaskas-credit

Moody's: Rejection of Ballot Measure 1 'positive' for Alaska's credit
Alex DeMarban
September 2, 2014

Moody’s Investors Service has given a thumbs-up to the August decision by Alaska voters to keep the oil-tax system known as the More Alaska Production Act in place.

One of three ratings agencies covering the state of Alaska, the New York firm said the decision to reject Ballot Measure 1 in the Aug. 19 election, which would have repealed MAPA if passed, was a “credit positive” for Alaska.

The update issued by Moody’s on Thursday is not a credit-rating action. But it shows the state’s credit rating is being maintained, said David Jacobson, a spokesperson at Moody’s.

~snip~

The update notes that the state’s current revenue forecast indicates Alaska may need to rely on savings in the coming years to offset revenue shortfalls caused by falling oil production. But it also notes that by the end of the year, the state will publish its first revenue forecast factoring in new production tied to MAPA.