Fitch affirms Port of Oakland’s A+ and A credit ratings

Fitch Ratings has affirmed the 'A+' rating on the Port of Oakland's approximately $253 million in senior lien revenue refunding bonds and the 'A' rating on $205 million of intermediate lien revenue refunding bonds. The Rating Outlook is Positive, reflecting the port's strong financial profile and a significant and noticeable reduction in debt in recent years.

Despite some challenges ahead, like shifting international trade policies, the Port of Oakland is pleased to be recognized by the rating agency for its fiscal prudence and stability.

“These ratings represent the Port’s continued commitment to prudent financial management and stability,” said Port of Oakland Executive Director Kristi McKenney. “They reflect great dedication and professional excellence by our Port staff and the Port Board.”

“The ratings reflect the port's diverse revenue streams from aviation, maritime, utilities, and commercial real estate operations. The ratings are further supported by Oakland Airport's largely origin and destination (O&D) traffic base, flexible rate-making methodology, and status as a medium-to-large hub in a competitive market, coupled with long-term Seaport contracts that stabilize the port's financial position,” states Fitch in a news release. The Port of Oakland does not receive direct local/city tax revenue for its ongoing operations.

“The port's diversified revenue streams and strong levels of unrestricted cash mitigate revenue volatility despite the macroeconomic uncertainties and changes in U.S. and foreign trade policy,” adds Fitch. “Clarity regarding the capital needs for the terminal modernization, along with stabilized volume levels that sustain future debt service coverage ratios (DSCRs) and provide for continued low leverage, could warrant an upgrade.”

Key rating drivers include:

• Sizable aviation and maritime operations
• Diversified revenue base
• Manageable capital plan
• Sound debt structure