Fitch Ratings has assigned an 'AA-' rating to the Port of Long Beach's $325 million TIFIA loan agreement, issued by the city of Long Beach, California for the Gerald Desmond Bridge Project, according to 'Business Wire'. The Rating Outlook is 'Stable'.
The rating on the TIFIA loan reflects the subordinate claim on gross revenues, together with the port's strong market position as the second largest U.S. container port, with resilient revenues stabilized by long-term contractual guarantees that are sufficient to cover both the port's outstanding senior debt obligations and the subordinate TIFIA loan.
Going forward, contractual guarantees are expected to continue to provide revenue stability as the port proceeds with expected future borrowing for its sizable long-term capital improvement plan (CIP). This plan, while costly, will help ensure the port's competitive position going forward. Strong financial metrics and considerable liquidity expected throughout execution of the CIP help support the port's rating.
Fitch also maintains ratings on the Port of Long Beach's outstanding senior lien harbor revenue and refunding bonds, which are rated 'AA' with a Stable Outlook.
For more information on Fitch's view of outstanding senior lien obligations, please see 'Fitch Affirms Port of Long Beach, CA's Harbor & Rfdg Revs at 'AA'; Outlook Stable' dated April 2, 2014, and 'Fitch Rates Port of Long Beach, CA's Harbor & Rfdg Revs and Rev Notes at 'AA'; Outlook Stable' dated April 15, 2014.
Both reports are available at www.fitchratings.com.