Moody’s Investors Service Issues A2 Stable Rating for Canaveral Port Authority
By Steve Linden, Port Canaveral Director of Communications and Public Affairs // August 3, 2018
acknowledges Port’s healthy financial metrics
BREVARD COUNTY • PORT CANAVERAL, FLORIDA – Moody’s Investors Service has rated Canaveral Port Authority ‘A2 Stable’ in its annual Credit Opinion.
The Moody’s bond rating opinion released late last week acknowledges the Port’s healthy financial metrics, established competitive position as a cruise port, and revenue diversity from cargo operations.
“Canaveral Port Authority continues to strengthen its financial profile by developing our cruise and cargo business,” Port CEO Captain John Murray said.
“This A2 rating with a stable outlook designation is a major endorsement of the Port’s financial direction and enables us to stay competitive in the global maritime market.”
Moody’s analysts noted that additional credit strengths for the Canaveral Port Authority include minimum annual guaranteed revenue contracts that provide revenue visibility, a cargo segment that adds to revenue diversification, conservative financial policy and healthy financial metrics.
Moody’s reported that the Port’s Fiscal Year 2018 through 2022 foresees capital improvement expenditures of around $422 million. The capital plan will be funded from a combination of operating cash flow, existing reserves and new debt issuances.
“The credit profile benefits from management’s track record to follow a conservative financial policy and maintain a debt service coverage ratio (DSCR) of around 2.25x over the last three years,” Moody’s stated.
“We expect that DSCR will be maintained at similar levels going forward.”
Moody’s Investors Service is a leading provider of credit ratings, research, and risk analysis. The New York City-based firm’s ratings and analysis track debt covering more than 135 countries.
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