Says outlook is stable
Oakland, Calif. - Moody’s Investors Service has upgraded Port of Oakland bond ratings and assigned ratings on an upcoming series of refunding revenue bonds. The upgrades, announced June 9, include:
$656 million of senior lien bonds to A1 from A2;
$324 million of intermediate lien bonds to A2 from A3; and
a subordinate lien bank note rating to A3 from Baa1.
Moody’s assigned an A2 rating on four series of intermediate lien refunding revenue bonds expected to be sold June 21. The Port said proceeds from the sale would be used to refund the Port’s 2007 intermediate lien bonds.
Moody’s said the Port’s outlook is stable.
“The stable outlook reflects our expectation of stability in air passenger traffic and marine cargo volume; ongoing vitality in the regional economy; and manageable risk in the maritime division due to the landlord model employed, which will support financial stability through a period of operational transition and potential short term revenue volatility,” Moody’s said in an announcement.
Moody’s said the upgrades reflect significant improvement in the Port’s credit profile, driven by a long-term and ongoing deleveraging; strengthened activity levels, improved debt service coverage ratios and a materially improved cash position. It added that it expects continued operational stability in the Port’s two largest divisions, aviation and maritime.