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Fitch affirms 'A' rating, stable outlook for Port Canaveral bonds

Fitch affirms 'A' rating, stable outlook for Port Canaveral bonds

As Port Canaveral progresses with its $244m capital program budgeted this year to upgrade its cruise and cargo facilities, Fitch Ratings affirmed an ‘A’ ranking for $13m of outstanding revenue bonds, series 2006 A&B, and declared all Canaveral bonds as ‘stable.’ Canaveral Port Authority has $184m of unrated debt obligations.

An 'A' rating is Fitch's third highest investment grade with the caution that the economic situation can affect finance.

Stable ratings are important because they enable the port to keep its borrowing costs down.

According to Fitch, the rating is attributed to Port Canaveral’s established operating history, cost management, sustained tourism-related revenue growth and corresponding favorable operating contracts. The agency also cited the port authority’s aggressive, but flexible, capital program which utilizes borrowing against the current line of credit. Conservative debt, modest leverage and strong coverage metrics were deemed as credit strengths.

'This rating is welcome news in support of funding the port’s initiatives to provide world-class facilities, as well as excellent customer service, in the globally competitive maritime industry,' Port Canaveral ceo John Murray said.

During 2015, Port Canaveral completed a record $184m in capital projects.

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