The US Port of Long Beach has reained its "AA" rating on its outstanding debt from US credit agency Fitch.
Fitch listed several reasons for its US ports highest rating, including strong market position and "resilient revenues" from long-term contracts covering senior debt and a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan.
Fitch affirmed the top rating on the port's $946m in senior lien harbor revenue bonds and notes from the City of Long Beach, California.
It also gave an "AA-" rating to $325m yet to be drawn from the TIFIA loan and "F1+" to $326m in harbor revenue refunding short-term notes.
The outlook on all of the bonds is stable, Fitch said.
The agency in May gave an "AA" rating on $993m in harbor revenue bonds and "AA-" on TIFIA loan and assigned a stable outlook.
Fitch said contractual guarantees should continue to provide revenue stability as the port keeps borrowing for a $2.4bn long-term capital improvement plan amid $408m in liquidity.
"This plan, while costly, will help ensure the port's competitive position going forward," Fitch said.
Fitch noted that 76% of the port's revenue comes from container cargo that exposes it to international trade fluctuations and growing competitive pressures.
"This was especially true in 2016 and 2017 with the bankruptcy of Hanjin (Shipping) and the realignment of container shippers into new alliances resulting in volume fluctuations."
Revenue has been protected from trade-related revenue volatility, however, due to the high percentage of long-term guaranteed contracts in place with most tenants even through the 2016 Hanjin bankruptcy.
