The agencies based their findings on JAXPORT's competitive position as a container port, especially in light of the addition of a new terminal for MOL/TraPac at the end of next year, and contract talks with Korea's Hanjin Shipping to build a dedicated terminal in Jacksonville. Moody's analysts noted that MOL and Hanjin 'are expected to significantly diversify the geographic composition of the port's trade lanes.' Other JAXPORT strengths outlined in the reports include its status as the nation's second vehicle import center, stable cash flow due to long-term contracts with private tenants, diversity of shippers, and track record of sound financial performance and debt service coverage. Analysts also pointed to JAXPORT's proximity to railroads and highways, which offers a competitive advantage in attracting container traffic.
To arrive at their respective decisions, Moody's and Fitch examined a myriad of financial records, including the Port Authority's revenue sources, expenses, debt service coverage and related business information.
JAXPORT officials say they have worked hard to maintain JAXPORT's financial health and are pleased to be awarded 'A' ratings amid such a difficult economic climate. 'This strong rating is indicative of our Board of Director's commitment to focus on the long-term financial health of our organization by way of our strategic plan,' said Ron Baker, JAXPORT's Deputy Executive Director and Chief Financial Officer. 'This is an excellent endorsement from two of the premier rating agencies in the country, and to have our financial health confirmed by Moody's and Fitch sends a very powerful message.'
The financial health of JAXPORT is important to the overall health of Jacksonville's economy. Impact studies show Jacksonville's port supports nearly 50,000 jobs in Northeast Florida and provides almost $3 billion in economic activity to the area.
Moody's and Fitch are leading global providers of credit ratings, research, and analysis for debt instruments and other securities.
