Moody’s Ratings upgrades Canaveral Port Authority’s revenue bonds to A2, ‘stable’ outlook

Moody’s Ratings has upgraded the Canaveral Port Authority’s revenue bonds to A2 and stable outlook as part of its annual Credit Opinion, noting that “the credit profile of Port Canaveral benefits from the Port’s position as the second busiest cruise port in the world and the strong cruise demand.”

According to the report, “The upgrade primarily reflects the Port’s continued strong performance in its cruise operations and robust coverage metrics, which Moody’s expects to continue at least over the next 12-18 months.”

“This ratings upgrade by Moody’s is a major endorsement of our commitment to strong business planning and sound fiscal management,” stated Capt. John Murray, Port Canaveral CEO. “Today’s announcement proudly reflects our ability to maintain a leadership position in a highly competitive international maritime market.”

The report added that the “Port Canaveral’s multi-day cruise passenger volume reached 7.6 million in fiscal year ending September 2024, up from 6.8 million in fiscal 2023, driving its continued strong debt service coverage ratio above 4x.”

Moody’s also noted that the Port plans to increase capital spending to $174 million in fiscal 2025 mainly to improve and upgrade existing facilities, compared with $113 million in fiscal 2024. Its capital spending will likely be elevated again in fiscal 2027-28 for new projects to accommodate growth.

Based in New York City, Moody’s Investors Service is a leading provider of credit ratings, research and risk analysis, tracking debt covering countries worldwide.