Fitch Ratings has confirmed bond ratings for the Port of Oakland and updated its rating outlook from stable to positive.
According to Fitch, the port’s positive outlook is reflected in its various income sources from aviation, maritime, utilities, and commercial real estate businesses, which are reinforced by consistent operational success.
Long-term contracts at Oakland Seaport (Seaport) have also been instrumental in stabilising the port’s financial status.
Fitch indicated that the port has solid leverage indicators for financing assets as well as the ability to repay debt-related payments.
Key drivers cited by Fitch for the change in the port’s rating outlook include the strength of the port’s revenue base, a manageable capital plan, a strong financial profile, and a sound debt structure.
The port is reportedly able to proceed with major capital investment projects due to solid budgetary management. These initiatives are slated to improve port facilities and infrastructure, allowing the port to retain existing clients, attract new business, and generate revenue.
Port of Oakland Chief Financial Officer, Julie Lam, said: “These bond ratings reflect the port’s unwavering commitment to prudent financial management and stability. They are a testament to the dedication and professional excellence of our Port staff and the Oakland Board of Port Commissioners.”
In May, the Port of Oakland’s container volume increased by 5.3 per cent compared to the same period last year with 188,040 TEU.