Municipal Bonds

Moody's cuts Alaska's outlook to negative on oil

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Alaska downgraded to negative by Moody's

Moody's Investors Service on Tuesday cut Alaska's outlook to negative from stable, citing the recent oil price weakness.

A plunge in oil prices since the start of the state's fiscal year "now threatens to rapidly and significantly reduce the state's budgetary reserves," Moody's said, in a statement. The outlook applies to $2 billion in debt.

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Moody's affirmed the Aaa rating assigned to the state's general obligation bonds, the Aa1 rating for its subject-to-appropration debt and the Aa2 ratign assigned to Alaska's moral obligation bonds.

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