Ratings reflect the Port’s financial picture
Oakland, Calif., 2022-Sep-08 — /Travel PR News/ — Moody’s Investors Service (Moody’s) has affirmed the Port of Oakland’s A1 senior lien and A2 intermediate lien credit ratings. The rating outlook assigned by Moody’s to both liens remains at Stable.
“These ratings represent great dedication and professional excellence by our Port staff,” said Port of Oakland Executive Director Danny Wan. “The credit strengths cited by Moody’s also reflect the Port Board’s continued commitment to prudent financial management and stability.”
According to Moody’s, the ratings reflect the Port’s strong financial flexibility, with robust liquidity, comfortable debt service coverage, manageable capital spending and significant long-term debt capacity. Moody’s says the Port of Oakland has sufficient liquidity to manage potential near-term challenges.
The Port of Oakland’s diverse business lines, including seaport and airport operations, provide financial stability according to Moody’s. In addition, the rating agency reports that the Port’s expenses are predictable, and its cost-recovery model is sound.
“The stable outlook reflects our expectation of continued recovery in enplanements and stable or potentially modest declines in containers, with the latter impact mitigated by the high level of contractual minimum revenue from maritime customers,” states Moody’s in a news release. Favorable economic conditions in the port’s markets should underpin near-term volumes; and with the Port’s liquidity, these factors combine to support Moody’s expectation of continued healthy financial performance by the Port of Oakland.
Moody’s also touched on key challenges, including risk around potentially significant new debt for an airport capital project; the planned reduction of cash over the next five years; and relative weakness in container volume.
“In our view, the strong financial position and ability to manage or mitigate throughput volatility position the port well to manage these challenges and maintain stable credit metrics going forward, and to withstand unexpected economic or other pressures that may arise,” said Moody’s.
About the Port of Oakland
The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port’s 5-year strategic plan – Growth with Care – pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs. Connect with the Port of Oakland and Oakland International Airport through Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.
Media Contacts:
Robert Bernardo
Port of Oakland
Communications Director
(510) 627-1401
rbernardo@portoakland.com
Marilyn Sandifur
Port of Oakland
Communications Manager
(510) 627-1193
msandifur@portoakland.com
Source: Port of Oakland
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