Standard & Poor’s Ratings Services has given bonds issued through the Cleveland-Cuyahoga County Port Authority’s Common Bond Fund program a BBB/Stable rating, stating that it views the program’s enterprise risk profile as “strong.”
The Port’s program has been an important economic development tool for the region, facilitating a wide range of construction and expansion projects. Since 1997, the Port has issued $129 million of revenue bonds through the program and currently has $67.9 million of bonds outstanding.
The fixed-rate financing program makes it possible for enterprises to access the U.S. capital markets and borrow money at investment-grade rates. The new S&P rating will allow the Port program to be even more competitive by offering lower financing rates and access to a larger pool of potential investors.
The dollars raised from selling the revenue bonds are not Port Authority dollars; instead they come from investors in the capital market.
“This upgrade is very welcome news because it will help us provide more attractive financing to a growing number of enterprises across our region, ” said Port CEO Will Friedman.
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Press Release, October 1, 2012