Fitch Ratings and Moody’s Investors Service, two of the top three U.S. credit analysis agencies, recently assigned “AA” and “Aa2” ratings respectively, to the Long Beach Harbor Department’s senior bonds. Fitch Ratings and Moody’s also assigned “AA-” and “Aa3”, respectively, to the $500 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan agreement by the Port for the Gerald Desmond Bridge Replacement Project, Port of Long Beach said in its release.
Fitch cited that despite the current coronavirus outbreak and trade disputes, the Port was deemed to be financially resilient due to a strong cash position and stable revenue from long-term leases with tenants.
The agencies also stated that with a sizable capital improvement program of $2.3 billion over the next decade, the rating agencies are confident in the Port’s ability to fund these projects and at the same time afford strong protection for the bondholders. Capital improvement projects allow the Port to remain competitive going forward. Those projects include the Port’s new Administration Building completed in 2019, the Gerald Desmond Bridge replacement, the Middle Harbor redevelopment program and ongoing rail improvements.