On Wednesday, Moody’s Investors Service (Moody’s) issued a credit opinion for the Port of Palm Beach affirming the Port has maintained a Baa2 with a stable outlook.
The bases for Moody’s determination is the Port’s strong financial performance.
According to Moody’s, the following items all played a role in the Port’s current credit profile.
- Multi-year contracts with largest tenants with minimum annual revenue guarantees
- Strong liquidity
- Sound financial margins
- An aggressive capital investment program that is forecasted to be all cash and grant funded
“The Port of Palm Beach, like most businesses, was significantly impacted in 2020 by the COVID-19 pandemic. While we saw a slight declines in cargo shipments, the no-sail order on our cruise business was and continues to be our greatest challenge,” said Chief Financial Officer and Deputy Director Paul Zielinski. “However, we have the financial depth to meet these challenges with a liquidity position exceeding 24 months. We also have the ability to maintain a favorable liquidity position as a result, of both the solid profit margins inherent in our long-term agreements and our continued commitment during this time to control expenses.”