Fitch Ratings has affirmed its ratings on Port of Oakland debt. The agency last week announced the following ratings for Port bonds:
• $622 million in senior lien revenue bonds at 'A+';
• $181.9 million in intermediate lien revenue bonds at 'A'; and
• Underlying bank bonds for the Port's commercial paper (CP) notes at 'A'.
Fitch said the ratings were based partly on the strength of the Port’s sizable origin and destination enplanement base and financial stability provided by long-term seaport contracts supporting cargo operations within a large, economically diverse and wealthy San Francisco Bay Area market.
Fitch also cited the Port’s strong balance sheet, high debt service coverage ratios, and diverse revenue streams from its three distinct business lines: aviation, maritime and commercial real estate.
The Port has issued debt to finance and refinance past capital improvements primarily at the seaport and its Oakland International Airport. Ratings by agencies such as Fitch help inform investors of the credit quality of a bond by measuring the bond issuer’s financial strength, and its ability to pay principal and interest over the life of the bond.
