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Finance: Houston

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S&P and Fitch Both Assign 'AAA' Rating to Port of Houston Authority 

Standard and Poor's Rating Services (S&P) and Fitch Ratings have each assigned a 'AAA' rating to Port of Houston Authority unlimited tax (ULT) series 2015 refunding bonds.

Proceeds from the bond sale will refund certain outstanding port authority bonds, a transaction the agency is expecting to produce debt service cost savings in excess of $10 million. Both rating services affirmed the 'AAA' rating on the port authority's $702 million ULT bonds (pre-refunding). They also concluded the rating outlook for the port authority is "stable."

The port authority's tax bonds are secured by an unlimited property tax levied on all taxable property within the port authority's taxing boundaries, which essentially cover the same area as Harris County.

Key rating drivers for both firms included a large, diverse regional economy, strong financial performance and position, including the port authority's capital improvement plan. Fitch's report cited the port's "inherent economic importance" to the nation and the port authority's "forward-looking capital improvement plan (CIP)," which "positions it for continued pre-eminence as a major national port." Fitch views the port authority's capital project implementation history as a credit positive.
 

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