Fitch Affirms A Rating on Jacksonville Port’s Bonds
- Business & Finance
Fitch Ratings has affirmed the A rating, with stable outlook, on Jacksonville Port Authority’s USD 87.4 million in outstanding revenue and refunding bonds.
The rating reflects JaxPort’s stable performance anchored by growing automobile activity and sizable contractually guaranteed revenues from existing long-term tenants that limit the port’s exposure to operational risk.
The port’s financial metrics remain healthy under Fitch’s rating case scenario, which includes an assumed USD 70 million in additional borrowing, with senior lien debt service coverage ratio (DSCR) expected to average 2.2x over the next five years and senior leverage (excluding interlocal revenues) to average 6.0x, consistent with the criteria’s indicative rating ranges.
Container trade and automobile imports/exports drive the port’s cargo trade. Container throughput as measured in TEUs was 1,033,068 in 2017, up 6.7% from the prior year. Auto shipments handled at JaxPort increased 9% in 2017, to a record 693,248 units.
Total imports and exports were up 10.1% and 3.1% by tonnage, respectively.