Port of Oakland A+ and A ratings affirmed by Fitch
Outlook moves from negative to stable as airport traffic picks up
Oakland, Calif. – August 9, 2021: Fitch Ratings has affirmed Port of Oakland bond ratings and lifted the Port’s ratings outlook from negative to stable. Fitch this week affirmed the following ratings on Port of Oakland debt:
- A+ for senior lien revenue bonds;
- A for intermediate lien revenue bonds; and
- A for the underlying bank bond rating for the Port’s commercial paper notes.
“The above rating affirmations and outlook revisions to stable reflect the diminished operational and financial risks that have challenged airports since early 2020 due to a combination of improving passenger volumes in recent months, the effective management oversight of budgets, and the financial relief accommodated by federal aid that appear to mitigate revenue impairments.” Fitch said in a statement.
Fitch raised the rating outlook of 18 major U.S. airports, including Oakland. The Port of Oakland operates Oakland International Airport.
Fitch issued negative rating outlooks on airports during the early stages of the coronavirus pandemic. At the time, the rating service cited loss of passenger traffic as nations worldwide closed their borders to air travel.
Many major airports, including Oakland, have regained passengers and revenue in 2021. Oakland has restored many of the air routes that airlines suspended due to the pandemic. According to Fitch, U.S. airport traffic is now at 75 to 80 percent of 2019 levels.
“While exposures remain with regard to traffic and revenue improvement, the progress suggests lessened fiscal strains, with airports better positioned to restore metrics to levels consistent with current rating levels,” Fitch said. “Travel volumes are expected to see additional growth in 2H21 and beyond, as business and international travel climbs from pandemic lows.”
About the Port of Oakland
The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port's 5-year strategic plan - Growth with Care - pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs. Connect with the Port of Oakland and Oakland International Airport through Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.