Rating reflects positively on Port’s market position as a leading cruise facility, healthy financial metrics
Port Canaveral, FL – 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.
Moody’s analysts noted that additional credit strengths for the Canaveral Port Authority include minimum annual guarantee 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.