Ratings agency gives plans the thumbs-up

Fitch Ratings, for example, has awarded an “A” rating to Virginia Port Authority’s revenue and refunding bonds, calling the outlook “stable.”

The agency says the authority “benefits from a diverse mix of customers, with no one customer representing more than 17% market share. Forty-seven percent of cargo moving through the port originates or is destined for locations in Virginia; export and import volumes are roughly equivalent.

“Exposure to the extremely competitive Atlantic port environment remains a concern. However, volumes have shown resilience in recent months. The port benefits from a 50-foot channel depth with no air draft restrictions and improved intermodal connections with the opening of the Heartland Corridor and the recent addition of CSX on-dock rail service at the AP Moeller Terminal.”

Fitch says that 55% of operating revenues are covered by minimum annual guarantees. “However, the authority’s projections are somewhat dependent upon top-line revenue growth over the next decade in order to maintain strong margins and coverage levels.”