San Diego Ports Get Fitch A+ Rating

MarineLink.com
Friday, October 25, 2013

Fitch Ratings has assigned an 'A+' rating to $19.3 million of refunding revenue bonds, series 2013 A, issued by the San Diego Unified Port District. In addition, Fitch has affirmed the 'A+' rating on approximately $39.2 million in outstanding revenue bonds, series 2004 A and 2004 B. The Rating Outlook on all bonds is Stable.

KEY RATING DRIVERS:

Mix of Maritime and Real Estate Assets:
The district's assets include real estate holdings in prime tourism/business areas of the city and two niche marine terminals primarily focused on break bulk cargo services. Growth in automobile and specialized equipment handling has been noted. Revenue Risk - Volume: Midrange

Diverse Sources of Revenue:
The maritime and real estate revenue base is supported by long-term fixed rents and concession revenues. Preliminary results for fiscal 2013 indicate fixed rents totaled 28% of operating revenue while concession revenues accounted for about 40% of operating revenues. Revenue performance declined considerably during the recession, though moderate growth has been seen in recent years and is forecast to continue going forward. Revenue Risk - Price: Midrange

Sound Debt Structure:
The district's debt is entirely fixed rate with stable annual debt service requirements. Legal provisions include a 1.25x rate covenant and additional bonds require 1.25x coverage of projected maximum annual debt service. A cash funded debt service reserve fund is maintained. Debt Structure Risk: Strong

Limited Future Capital Needs:
Capital needs in the near term are limited and expected to be funded through excess cash and capital reserves. Management indicates the district's 2014-2018 capital plan will require future cash flows of approximately $3 million thru fiscal 2018. Infrastructure and Renewal: Stronger

Strong Balance Sheet Offsets
Overall Constrained Financial Flexibility: Net debt to cash flow available for debt service (CFADS) is cash positive at -2.1x as a result of the strong cash position which also benefits liquidity (346 days cash on hand as of June 2013). Senior debt service coverage levels are sound though all-in debt service coverage is narrower. Operating margins have significantly deteriorated since 2007 as a result of weak economic conditions and cost escalations during the recession, though the district is implementing cost-cutting measures.

Additional information is available at: www.fitchratings.com


People & Company News

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Why Maritime Museums Matter

With today’s focus on digital technology, mobile apps, enhanced reality and the overall digital landscape, the maritime industry often gets overshadowed, leaving some to ask,

Ports

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

Shenzhen Port to Adopt China ECA Regulation

China's Shenzhen port is set to to adopt requirements for ships at berth requiring to burn marine fuel with sulfur content not exceeding 0.5 percent starting October this year,

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Finance

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Australia Warns DCNS after Security Breach

Australian defence officials warned French naval contractor DCNS to beef up security in Australia, where it is preparing to build a A$50 billion ($38.13 billion) fleet of submarines,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1355 sec (7 req/sec)