Port of Seattle receives S&P bond rating upgrade
The Port of Seattle has received a financial vote of confidence from Standard and Poor's. Citing the port's diverse revenue base, a steady demand for port services, and the port's strong financial history, the New York-based ratings firm has raised its published ratings on more than $1 billion of outstanding port revenue bonds following a review of the Washington state port in preparation for an issuance of revenue bonds.
The ratings upgrade applies to the port's Intermediate Lien and Subordinate Lien revenue bonds, which were upgraded to 'A+' and 'A,' respectively, from S&P's former ratings of 'A' and 'A-.'
S&P also held steady its 'AA-' rating on the port's Senior Lien revenue bonds. Senior Lien revenue bonds are planned to be issued next month to finance about $230 million of port construction projects, including the relocation of cruise operations from Terminal 30 to Terminal 91 and the redevelopment of Terminals 25, 28 and 30 into a combined container terminal. Two other rating agencies, Moody's and Fitch, held the port's bond ratings steady.
In its notes about the ratings increase, S&P said the agency was basing its decision on the diversity of the port's revenue base, which includes airport and seaport revenues, as well as the county-wide tax levy. In addition, S&P noted there remains resilient demand for aviation and seaport services, operational and financial diversity, a stable traffic base and a history of strong coverage of annual debt service. It also noted the port's ability to manage its 2007-2011 capital plan without exceeding current cost estimates.
CBS News reported Tuesday that Moody's noted the port's 'significant and sustained, higher-than-projected financial margins and reserves,' as well as growth in the different lines of business. Moody's said the outlook for the port's ratings is stable, 'and based on our expectations that the port will continue to enjoy strong finances as it implements key components of its CIP (capital program) in the next few years.'
Fitch, according to CBS, noted the port's high rankings 'reflect its importance as a regional transportation provider, diverse revenue streams and management's financial acumen.'
Port of Seattle receives S&P bond rating upgrade
