The Port of Stockton was awarded a rating upgrade by Moody’s in recognition of improved revenues and lower debt on March 28th.
Moody’s Investors Service says it “has upgraded to A3 from Baa1 the rating on the Port of Stockton’s (CA) Series 2007 A&B revenue bonds, outstanding in the approximate amount of $23 million.”
Richard Aschieris, Port of Stockton Port Director, told AJOT: “We are delighted by the news that Moody’s has upgraded our bond rating and recognizes the tremendous infrastructure investments that the Port has made in the last several years.”
Aschieris noted that there have been major investments in road, rail, bridges and in the modernization of the ‘Rough and Ready’ terminal at the Port that was originally built during World War II.
In addition, Aschieris noted major private sector investments:
“Over the last few years, since the ’08 – ’09 recession, we have seen a private sector investment of close to $2 billion in the Port. This is over and above the investments we have made in infrastructure.”
Moody’s said, “The upgrade reflects resumed growth in net operating income emerging from the recession, additional stability provided by a growing share of revenues represented by fixed rental payments over the past decade, and the elimination of expenses related to the marine highway project which was suspended in August 2014.”
The review concluded by saying, “Strengthened credit quality also incorporates improved debt service.”