Fitch :‘A’ Bond Rating, Stable Outlook for Port Canaveral
By Joseph R Fonseca
Saturday, April 28, 2018
Fitch Ratings affirmed today the 'A' rating on approximately $64.3 million of Canaveral Port Authority (CPA) port revenue bonds. The Rating Outlook is Stable. Today's announcement by the credit rating agency underscores Port Canaveral's market position as a leading cruise-focused port in the U.S. With approximately five million revenue passengers expected in Fiscal Year 2018, the Port is the world's second busiest cruise port and Florida's third largest by operating revenue.
“Canaveral Port Authority has made strategic investments in our infrastructure to enhance our mission as a premier maritime gateway,” stated Captain John Murray, Port CEO. “This rating with Stable Outlook designation is an important endorsement of the Port's financial credibility. It opens the Port to opportunities for supporting our growth to ensure we remain competitive in a complex global maritime market."
The Fitch 'A' Rating also reflects the Port's established operating history, aggressive yet flexible capital program, and conservative debt structure, which have led to modest leverage and solid coverage metrics when compared with the Port's peers in the 'A' category.
Fitch analysts reported the Port's Fiscal Year 2018 through 2022 capital improvement program (CIP) at $378.5 million is "robust, yet remains flexible, with the ability to adjust scale and timing of projects as warranted by demand" and the Port's debt service coverage ratio (DSCR) "remained strong" at 2.2x.
Fitch Ratings Inc. is one of three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission. The agency is dual-headquartered in U.S. (New York) and U.K. (London).