Finance: Oakland, Vancouver USA
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Moody’s Upgrades Port of Oakland Bond Ratings
Moody’s Investors Service has upgraded Port of Oakland bond ratings and assigned ratings to a forthcoming series of refunding revenue bonds. The upgrades, announced June 9, include:
• $656 million of senior lien bonds to A1 from A2
• $324 million of intermediate lien bonds to A2 from A3
• A subordinate lien bank note rating to A3 from Baa1
Moody’s assigned an A2 rating on four series of intermediate lien refunding revenue bonds expected to be sold June 21. Proceeds from the sale will be used to refund the port's 2007 intermediate lien bonds.
Moody’s said the port’s outlook is stable outlook "reflects our expectation of stability in air passenger traffic and marine cargo volume; ongoing vitality in the regional economy; and manageable risk in the maritime division due to the landlord model employed, which will support financial stability through a period of operational transition and potential short term revenue volatility."
It said the upgrades reflect significant improvement in the port’s credit profile, driven by a long-term and ongoing deleveraging; strengthened activity levels, improved debt service coverage ratios and a materially improved cash position. It expects continued operational stability in the port's two largest divisions, aviation and maritime.
Port of Vancouver USA issues $30 million in revenue bonds
Late last month the Port of Vancouver USA issued revenue bonds totaling $30 million. Thanks to strong order activity, the port’s "A stable" credit rating and favorable market conditions, the port received an interest rate that will save $4.2 million over the life of the bonds.
"Our team works very hard to come up with innovative, cost-effective methods of financing our capital projects," said Director of Finance and Accounting Scott Goodrich. "Saving money on these bonds will allow us to invest in key infrastructure and economic development opportunities now and in the future."
The port has issued general obligation bonds in the past, which are secured by a municipality’s pledge to use legally available resources, including tax levies, to repay bond holders. Revenue bonds guarantee repayment solely from operating revenues.
The port commission voted unanimously last December to adopt a resolution authorizing the issuance of 2017 revenue bonds. These bonds are the second in a series of three major debt issuances. The port plans to issue the third and final bonds of this series next year, issuing between $15 million and $25 million.
The bond proceeds allow the port to complete major projects such as the West Vancouver Freight Access Project and to fund acquisitions, improvements and repairs to port properties and facilities.
Moody’s Investors Service has upgraded Port of Oakland bond ratings and assigned ratings to a forthcoming series of refunding revenue bonds. The upgrades, announced June 9, include:
• $656 million of senior lien bonds to A1 from A2
• $324 million of intermediate lien bonds to A2 from A3
• A subordinate lien bank note rating to A3 from Baa1
Moody’s assigned an A2 rating on four series of intermediate lien refunding revenue bonds expected to be sold June 21. Proceeds from the sale will be used to refund the port's 2007 intermediate lien bonds.
Moody’s said the port’s outlook is stable outlook "reflects our expectation of stability in air passenger traffic and marine cargo volume; ongoing vitality in the regional economy; and manageable risk in the maritime division due to the landlord model employed, which will support financial stability through a period of operational transition and potential short term revenue volatility."
It said the upgrades reflect significant improvement in the port’s credit profile, driven by a long-term and ongoing deleveraging; strengthened activity levels, improved debt service coverage ratios and a materially improved cash position. It expects continued operational stability in the port's two largest divisions, aviation and maritime.
Port of Vancouver USA issues $30 million in revenue bonds
Late last month the Port of Vancouver USA issued revenue bonds totaling $30 million. Thanks to strong order activity, the port’s "A stable" credit rating and favorable market conditions, the port received an interest rate that will save $4.2 million over the life of the bonds.
"Our team works very hard to come up with innovative, cost-effective methods of financing our capital projects," said Director of Finance and Accounting Scott Goodrich. "Saving money on these bonds will allow us to invest in key infrastructure and economic development opportunities now and in the future."
The port has issued general obligation bonds in the past, which are secured by a municipality’s pledge to use legally available resources, including tax levies, to repay bond holders. Revenue bonds guarantee repayment solely from operating revenues.
The port commission voted unanimously last December to adopt a resolution authorizing the issuance of 2017 revenue bonds. These bonds are the second in a series of three major debt issuances. The port plans to issue the third and final bonds of this series next year, issuing between $15 million and $25 million.
The bond proceeds allow the port to complete major projects such as the West Vancouver Freight Access Project and to fund acquisitions, improvements and repairs to port properties and facilities.
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