Reported by Star-Bulletin staff & wire
Thursday, July 30, 1998
Moody's cuts rating for Kauai's bonds
One of the nation's leading raters of corporate and government bonds has downgraded its opinion of bonds issued by the County of Kauai. Moody's Investors Service today said it has cut its Kauai rating to A-2, from A.The A rating is Moody's third-highest, described as upper-medium grade with elements that suggest the bonds may be susceptible to some negative factors in the future. A-2 shifts the rating from the high end of the A bracket into what Moody's calls the mid-range category.
Bond ratings can affect the interest the issuer has to pay to raise the money. Moody's officials were not immediately available for comment on the change.
Cayetano again picks Pai for PUC board
Gov. Ben Cayetano is trying for the third time to get economist Gregory Pai a seat on the Public Utilities Commission.The governor yesterday appointed Pai to take the seat being vacated Friday by Yukio Naito. Pai's nomination was withdrawn in 1996 because of opposition in the state Senate, which must approve the appointment. He then was appointed on an interim basis, but resigned after senators complained that the appointment violated the state Constitution. The latest appointment shouldn't create the same problem, since Pai would fill a new vacancy, a Cayetano spokeswoman said.
Construction contracts in isles fall 42% in June
Contracts written for future construction in Hawaii totaled $111.3 million last month, down 42 percent compared with $191.6 million in June 1997, according to a survey by the F.W. Dodge division of McGraw-Hill Cos.Residential building contracts were down 50 percent at $44.2 million and contracts for nonresidential buildings were down 76 percent at $22 million.
For the first half of 1998, Hawaii construction contracts were down 16 percent at $735 million compared with $879.4 million in the 1997 first half. Residential construction contracts totaled $255.4 million, down 29 percent. Contracts for nonresidential buildings, such as commercial structures and schools, were worth $280.7 million in the first year, down 27 percent. But nonbuilding construction contracts, for structures such as roads and bridges, were up 48 percent at $198.9 million for the half-year.
Dixie Grill goes to Kona for second Hawaii outlet
Dixie Grill, known for its Southern-style food, will open its second Hawaii restaurant in December in Kailua-Kona. The eatery will replace the Kona Ranch House restaurant and bakery at 75-5653 Ololi St., said Dixie Grill owners Ed Wary and Barry Silverman. The first Dixie Grill opened at 404 Ward Ave. in June 1997.
Mortgage rates rise for third straight week
WASHINGTON -- The average interest rate on 30-year fixed-rate mortgages rose for the third week in a row, the mortgage company Freddie Mac reported today. The increase was slight and kept rates below 7 percent for the seventh consecutive week.The average increased to 6.97 percent this week from 6.96 percent last week and a six-month low of 6.91 percent three weeks earlier. Three months ago, the average hit a 51/2-month high of 7.22 percent. Fifteen-year mortgages averaged 6.64 percent this week, up from 6.63 percent last week. One-year adjustable-rate mortgages averaged initial rate of 5.62 percent, down from 5.65 percent.
See expanded coverage in today's Honolulu Star-Bulletin.
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