Oakland, Calif. – November 14, 2022: Fitch Ratings has affirmed the Port of Oakland’s outstanding senior bonds at A+ and outstanding Intermediate Lien and underlying bank bonds at A. The rating outlook assigned by Fitch on all bonds is Stable.
“These ratings reflect continued commitment to prudent financial management and stability,” said Port of Oakland Executive Director Danny Wan. “They represent great dedication and professional excellence by our Port staff and the Port Board.”
According to Fitch, the ratings reflect the Port’s diverse revenue streams from aviation, maritime, utilities, and Commercial Real Estate (CRE) operations. Fitch says the ratings are further supported by Oakland International Airport’s largely origin & destination (O&D) traffic base, flexible rate-making methodology and status as a medium-to-large hub in a competitive market space, coupled with long-term seaport contracts which provide stability for the port’s financial position.
Fitch added that the port’s financial metrics are strong in terms of leverage and coverage and the updated capital improvement plan (CIP) is manageable with no additional borrowings currently anticipated.
Fitch indicated a key rating driver was the Port’s sizeable aviation and maritime operations base.
“The port benefits from its sizeable enplanement base and maritime cargo operations within the large, economically diverse and wealthy San Francisco Bay Area,” states Fitch in a news release. “These strengths are somewhat offset by high dependence on the Pacific Rim for maritime trade, significant competition from nearby airports, and the airport’s high airline concentration in Southwest Airlines,” said Fitch. “Concentration concerns are mitigated by the airport’s primarily origin and destination (O&D) traffic profile with robust positive growth rates prior to the pandemic, and aviation recovery has lagged the nation but the strength of maritime operations has served as a mitigant to aviation recovery.”
Other key rating drivers were the Port of Oakland’s diversified revenue base, manageable capital plan, sound debt structure, and financial profile.
Fitch said that significant increases to the Port’s cost profile or a notable and sustained decline in ongoing maritime and/or aviation sector revenues are factors that could lead to a downgrade.
“The port’s financial metrics are strong in terms of leverage and coverage and the updated capital improvement plan (CIP) is manageable with no additional borrowings currently anticipated,” said Fitch.
About the Port of Oakland
The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port’s 5-year strategic plan – Growth with Care – pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs. Connect with the Port of Oakland and Oakland International Airportthrough Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.
| Media Contacts Robert Bernardo Port of Oakland Communications Director (510) 627-1401 [email protected] David DeWitt |