Hawai'i earned an A on a new report card rating states on policies that create financial prosperity.

However, Hawai'i residents still face significant challenges in areas such as homeownership and financial security, according to the report released by the Corporation for Enterprise Development.

Overall, Hawai'i fared well for having policies conducive to business development and good access to healthcare, according to the group's 2007-08 Assets and Opportunity Scorecard. CFED is an advocate of economic opportunities for the poor.

Hawai'i also had favorable results for low bankruptcy and foreclosure rates. High scores in those categories helped offset low scores for household net worth and savings rates. The state also got high marks for health insurance coverage.

Hawai'i households have unusually low net worth (46th nationwide), and are among the most likely in the nation to have zero or negative net worth (48th) and lack sufficient savings to subsist above the poverty level for three months (47th), according to the study.

In addition, Hawai'i has not enacted policies to help assist families in their ability to save and build financial security. Hawai'i also should take steps to enact laws protecting against predatory lending and to reduce subprime loans in the state, the nonprofit said.

The results were an improvement on the B grade Hawai'i received on CFED's prior report released in 2005.

"Hawai'i can be proud that we compare favorably against other states in providing healthcare to our residents, but we need to take action to ensure financial security for all of Hawai'i's families," said Brent Dillabaugh, deputy director of Hawaii Alliance for Community-Based Economic Development.