Fitch Ratings has affirmed the Port of Oakland’s outstanding senior bonds at A+ and outstanding Intermediate Lien and underlying bank bonds at A.
The rating outlook assigned by Fitch on all bonds is Stable.
“These ratings reflect continued commitment to prudent financial management and stability,” commented Port of Oakland executive director Danny Wan.
According to Fitch, the ratings reflect the Port’s diverse revenue streams from aviation, maritime, utilities, and Commercial Real Estate (CRE) operations.
Fitch also says the ratings are further supported by Oakland International Airport’s largely origin & destination (O&D) traffic base, flexible rate-making methodology and status as a medium-to-large hub in a competitive market space, coupled with long-term seaport contracts which provide stability for the port’s financial position.
Moreover, Fitch added that the port’s financial metrics are strong in terms of leverage and coverage and the updated capital improvement plan (CIP) is manageable with no additional borrowings currently anticipated.
“The port benefits from its sizeable enplanement base and maritime cargo operations within the large, economically diverse and wealthy San Francisco Bay Area,” said Fitch in a press release highlighting that a key rating factor was the port’s significant base of aviation and shipping activities.
Fitch also added that significant increases to the Port’s cost profile or a notable and sustained decline in ongoing maritime and/or aviation sector revenues are factors that could lead to a downgrade.