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Credit rating firms issue positive reports for Alaska

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Credit rating firms issue positive reports for Alaska


By Andrew Kitchenman, Alaska Beacon

Updated: 2 hours ago Published: 2 hours ago

The two largest credit rating firms issued positive reports for Alaska’s state government this spring, noting growing state budget reserves and progress on future North Slope oil projects.

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S&P upgraded Alaska’s rating, while Moody’s revised the state’s rating outlook from stable to positive on April 30.

Credit ratings affect how much it costs the state government to borrow money and act as a thermometer for the health of state finances.

“It signals to the market that there’s economic activity and interest in the state,” said Adam Crum, commissioner of the state Department of Revenue.

Crum said after a previous credit rating improvement, an oil company told state officials their investors felt Alaska was a safer investment.

“We’ve heard for like 10 or 12 years, Alaska’s on the decline — we are a little bit, on the population side. But we’re starting to see a growth in the long-term picture of economic activity that we want the market to see,” Crum said. “And we want to get this like a snowball, and it gets bigger and bigger with more investment.”

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The state’s credit ratings deteriorated between 2016 and 2020, then stabilized and are now improving.

In a credit opinion May 6, Moody’s Investor Services staff noted that Alaska’s Constitutional Budget Reserve grew over the past two years and the state expects it to grow modestly in the future, though it remains much smaller than it was a decade ago. The CBR is the state’s largest savings account, other than the Permanent Fund.

While the Moody’s report was largely positive, it pointed out some reasons for concern: While Alaska has kept draws from the Permanent Fund within the limit in state law, how those draws are divided between state operating expenses and Permanent Fund dividends remains unsettled.

And Alaska remains vulnerable to changes in the global oil market.

“While we may not want to implement new taxes or revenue streams, defining some of our large expenditures a little bit more clearly and a little bit more predictably are some of the things that can help us in the long term,” Crum said.

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S&P upgraded Alaska to AA, its third-highest rating level, from AA-. Moody’s maintained Alaska at its fourth-highest rating level, Aa3, while changing the outlook from stable to positive.

Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.





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Alaska

From Alaska to South Sudan, the Climate Crisis is Already Here

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From Alaska to South Sudan, the Climate Crisis is Already Here


Communities around the world are feeling the impacts of climate change. The coming summer heat is a stark reminder that our planet is in peril, urging us to invest in mitigation to curb climate change’s relentless advance and adaptation to safeguard our communities against its inevitable impacts.

My recent conversations with communities across the globe from the Pan-African Peacemakers Alliance (PAPA) to the University of Alaska Fairbanks Climate Scholars program have underscored the haunting reality: climate change is already here and threatening peoples’ very ways of life. The US must do more at home and abroad to tackle it and help people adapt to impacts in ways that protect them and their identities.

South Sudan

Recent years have brought South Sudan both droughts and floods leading to hunger crises, displacement, and conflict. Climate change has increased tensions between smallholder farmers relying on rain-fed production and nomadic pastoralists because droughts make it harder for both groups to find enough land and water. In rural communities, flooding has caused the loss of homes, cattle, crops, and longstanding customs. Communities that have relied on farming to feed themselves are now under extraordinary strain, forcing many to move to cities that do not have the support capacity to receive them. Additionally, the impacts of floods and associated violence have hit the most vulnerable the hardest, especially women and children.

PAPA and its founder/director, Yoal Gatkuoth, do important work with communities in South Sudan to reduce tensions between different groups. The underlying problem? Climate change is worsening, and the country does not have the resources to adapt to it. They are not alone. While developing countries have done the least to cause climate change, they are experiencing its worst effects and often lack the financial resources to adapt.

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Fairbanks, Alaska

Climate change is not just an international challenge. As the students from the University of Alaska, Fairbanks pointed out, Alaskan communities are facing flooding, coastal erosion, severe winter storms, and wildfires. The thawing of permafrost soil can damage pipelines, buildings, roads, and water supplies. Experts estimate the cost of maintaining public infrastructure may increase by 10-20% over the next 20 years.

As the hot summer months begin in earnest, it’s time to recognize the role the US must play in advancing effective climate solutions around the world.

Like in South Sudan, climate change is affecting the availability of food in Alaska and is decimating traditional cultures. The increasing acidity of the ocean is affecting the fishing industry, which is the state’s third largest economic driver and a vital food source for many in the state. Alaska Natives are particularly vulnerable, since loss of sea ice limits hunting grounds and reduces habitat for traditional food sources, impacting groups such as the Yup’ik, Iñupiat, and Inuit. For many of these Indigenous communities, the impacts of climate change aren’t simply about the reduction of economic wellbeing — it is about a loss of their culture and their very ways of life.

Climate Change Knows No Borders 

Leadership in international climate assistance is essential for addressing the urgent challenges posed by climate change. Helping developing countries reduce greenhouse gas emissions, protect critical ecosystems, and transition to renewable energy helps us reach global goals to mitigate climate change. Initiatives like USAID’s Adaptation Fund helps communities in developing countries build resilience and respond to the challenges posed by the climate crisis. It is also financially responsible, as every dollar spent on resilience saves $3 that would have been spent on humanitarian assistance. By proactively engaging in climate assistance efforts, the US can mitigate these risks and promote global stability.

Domestically, the US took decisive climate action through the Inflation Reduction Act, the largest investment to address climate change, support sustainable agriculture practices, and conserve natural resources. The federal government needs to do more to help communities already experiencing climate impacts, increase resiliency across the country, and create a more efficient disaster planning response. This would be a smart financial investment as, according to FEMA (Federal Emergency Management Agency), each dollar invested in resilience saves $6 when there is a disaster, not to mention the human cost and the financial costs for individuals.

As the hot summer months begin in earnest, it’s time to recognize the role the US must play in advancing effective climate solutions around the world. From Fairbanks to South Sudan and every community in between, more can be done to effectively steward this amazing world upon which we live. Investing in proactive measures and resilience-building strategies will secure a sustainable future for generations, ensuring global environmental justice that respects every community and culture on our planet.

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Alaska’s Mac Swanson taken in 7th round of NHL Draft by Pittsburgh Penguins

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Alaska’s Mac Swanson taken in 7th round of NHL Draft by Pittsburgh Penguins


ANCHORAGE, Alaska (KTUU) – Anchorage-born skater Mac Swanson was drafted by the Pittsburgh Penguins in the 7th round, 207th overall, in the 2024 NHL Draft, Saturday, after a dominant season in junior hockey where he was named USHL’s Player of the Year.

The 18-year old will play at the University of North Dakota this fall after reporting to Penguins’ development camp next week.

Swanson was named by USA Hockey as the best player in Junior Hockey after a season in which he led the Fargo Force to the Clark Cup Championship, where he was named playoff MVP.

During the season, he led all USHL skaters with 51 assists and third in total points with 77 in 55 games played which led to an avalanche of accolades that included USHL Player of the Year, Forward of the Year and a first team All-USHL selection.

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His father, Brian Swanson, was selected in the 1994 NHL Draft by the San Jose Sharks and played for the ECHL’s Alaska Aces.



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Wildfire prompts evacuations near Denali National Park entrance along Parks Highway

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Wildfire prompts evacuations near Denali National Park entrance along Parks Highway


ANCHORAGE, Alaska (KTUU) – A wildfire that has quickly grown to about 300 acres is threatening the entrance to Denali National Park on the Parks Highway and has forced the evacuation of several hundred people.

The blaze — named the Riley Fire — began burning shortly after noon on Sunday and by 5:30 p.m. was reported at around 350 acres in size.

The fire was first spotted near mile 239 of the Parks Highway, across the Nenana River from the town of Denali, a heavily-populated spot in the summer when tourists visit, and about a mile north of the entrance to the park.

No structures are immediately threatened by the blaze, officials said.

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A wildfire that has quickly grown to about 300 acres is threatening the entrance to Denali National Park on the Parks Highway.(Courtesy Denali Borough/via Bureau of Land Management)

Denali National Park spokesperson Paul Ollig said that the blaze is within about a quarter of a mile from people and structures.

“The area where the fire is currently burning is up above the Nenana River in close proximity to the Horseshoe Lake Trail area,” Ollig said. “It is generally dense black spruce forest, and is right up against Mount Healy, so it does have some steep terrain that climbs pretty quickly in that area, once you’re across once you’re west of the railroad tracks.”

Ollig estimated that around 200 people are currently being affected by evacuation notices in the area, including 100 to 150 park employees and another 75 to 100 residents.

Other areas of the park near the fire are in “ready” mode to evacuate, Ollig said, meaning they must be ready to evacuate if the order is given. That includes campers in the Riley Creek Campground, which Ollig said is closest to the blaze.

The Bureau of Land Management’s Fire Service team said 12 smokejumpers responded to the fire via plane and another 10 were driving to the area to help suppress it.

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Ollig said that tour and transit bus service has been stopped going westbound. Day-use visitors west of the park entrance are being shuttled back eastward, and “public front-country” facilities and nearby trails have been closed, including the Denali Visitor Center.

The Riley Fire burns near the Denali National Park entrance on June 30, 2024.
The Riley Fire burns near the Denali National Park entrance on June 30, 2024.(Courtesy National Park Service)

BLM said in addition to the smokejumpers, four water-scooping planes were on scene to help douse the flames, with two water scoopers and a retardant air tanker on the way.

The fire was reportedly burning an area predominantly thick with black spruce trees near the Alaska Railroad.

The Park Service said that agencies working to contain the fire include the Alaska Division of Forestry & Fire Protection, Tri-Valley Volunteer Fire Department, and the McKinley Village Volunteer Fire Department.



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