The Port of Oakland’s A+ rating for outstanding senior bonds and A rating for outstanding Intermediate Lien and underlying bank bonds have been affirmed by Fitch Ratings, which also said the rating outlook on all bonds is considered stable, the port said Nov. 14.
“These ratings reflect continued commitment to prudent financial management and stability,” port Executive Director Danny Wan said. “They represent great dedication and professional excellence by our port staff and the port board.”
The Northern California seaport’s ratings reflect the port’s various streams of revenue, which include aviation, commercial real estate, maritime and utilities, according to Fitch.
“The port benefits from its sizable enplanement base and maritime cargo operations within the large, economically diverse and wealthy San Francisco Bay Area,” Fitch stated in a news release.
The port’s high dependence on the Pacific Rim for maritime trade, significant competition from nearby airports, and the airport’s high airline concentration in Southwest Airlines somewhat offsets these strengths, Fitch said.
However, Fitch adds: “Concentration concerns are mitigated by the airport’s primarily origin and destination (O&D) traffic profile with robust positive growth rates prior to the pandemic, and aviation recovery has lagged the nation but the strength of maritime operations has served as a mitigant to aviation recovery.”
