Moody's Investors Service (Moody’s) has affirmed the Port of Oakland's A1 senior lien and A2 intermediate lien credit ratings. The rating outlook assigned by Moody’s to both liens remains at Stable, according to the company's release.
According to Moody’s, the ratings reflect the Port's strong financial flexibility, with robust liquidity, comfortable debt service coverage, manageable capital spending and significant long-term debt capacity. Moody’s says the Port of Oakland has sufficient liquidity to manage potential near-term challenges.
The Port of Oakland’s diverse business lines, including seaport and airport operations, provide financial stability according to Moody’s. In addition, the rating agency reports that the Port's expenses are predictable, and its cost-recovery model is sound.
Moody’s also touched on key challenges, including risk around potentially significant new debt for an airport capital project; the planned reduction of cash over the next five years; and relative weakness in container volume.
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.