GovGuam Bonds Upgraded to B +

GovGuam bond upgraded to B+
By Sabrina Salas Matanane
Published Oct 29, 2008
KUAM NEWS

Ratings authority Standard & Poor's has upgraded the Government of Guam's General Obligation bonds to "B+" from "B". The upgrade follows a recent trip by Guam Economic Development and Commerce Administrator Tony Blaz, governor's chief of staff George Bamba, and Bureau of Budget Management & Research director Bertha Duenas, who met with the company two weeks ago.

During that meeting the governor's financial team highlighted "the projected growth of Guam's economy including the imminent military buildup and tourism diversification efforts with regards to the China Visa Waiver Program," stated Blaz. According to a report issued by S&P, "The upgrade is based on the general government's improved financial performance, which is the direct result of greater political consensus to enhance revenues and control expenditure growth."

The report went on to state that it was also based on the general government more fully addressing the unfunded long-term liabilities on Guam's balance sheet. "This is excellent news, which speaks to this Administration's serious commitment to stronger finances," Governor Felix Camacho said. "When I came to office in 2003, I promised to improve the government's finances and take us up the road to fiscal recovery. I'm proud we're accomplishing this for the benefit of the generations that come after ours. "

"There is a long road ahead and we're going to keep working to eliminate the deficit, pay our people what they are owed and strengthen the government's financial position further," he added.