Moody’s upgrades Port of Oakland bond ratings
Oakland, Calif. – June 14, 2017: 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.
Forward Looking Statements
Certain statements contained in this press release reflect not historical facts but forecasts, projections, estimates and other “forward-looking statements.” In this respect, the words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe,” “forecast,” “assume” and similar expressions are intended to identify forward-looking statements. Such forecasts, projections, estimates and other forward-looking statements are not intended as representations of fact or guarantees of results. Any such forward-looking statements are subject to a variety of risks and uncertainties that could cause actual results or performance to differ materially from those that have been forecasted, estimated or projected. These forward-looking statements speak only as of the date of this press release. The Port assumes no obligation to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any changes in the Port’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
About the Port of Oakland
The Port of Oakland oversees the Oakland seaport, Oakland International Airport, and 20 miles of waterfront. Together with its business partners, the Port supports more than 73,000 jobs in the region and nearly 827,000 jobs across the United States. Connect with the Port of Oakland and Oakland International Airport through Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.