Port Authority of Guam's credit rating reaffirmed for sixth consecutive year

By Pacific Island Times News Staff

Moody's Ratings has affirmed the Port Authority of Guam's Baa2 senior lien revenue bond rating with a stable outlook, marking the sixth consecutive year the international credit rating agency has reaffirmed the port's creditworthiness.

In affirming the port authority's rating for its $54.3 million in outstanding revenue bond debt, Moody’s cited the harbor facility's essential role as Guam’s only commercial seaport, its low debt burden, strong liquidity and prudent financial management.

“Moody’s reaffirmation reflects the disciplined governance, responsible leadership, and sound financial management that have strengthened one of Guam’s most important public institutions," Gov. Lou Leon Guerrero said.

Moody's also recognized the port’s ongoing efforts to align revenues with rising operating costs through its pending tariff adjustment while maintaining stable financial operations.

Moody’s projects the port will maintain a stable financial position through Fiscal Year 2026 and expects financial metrics to continue improving as debt declines and additional revenue measures are implemented, positioning the Port for continued financial strength.

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“Receiving this affirmation from Moody’s for the sixth consecutive year demonstrates the strength of the port’s financial management and the confidence placed in the Port’s governance and management,” said Rory J. Respicio, the port's general manager.

Despite the challenges posed by inflationary pressures and changing cargo volumes, Respicio said the port authority has remained disciplined in protecting its financial position while continuing to invest in critical infrastructure and terminal handling equipment

He also credited the port's employees for keeping Guam’s supply chain moving to and from our island and throughout the region.

"Strong governance, disciplined management and deliberate immediate and long-term planning have strengthened the port’s readiness to support Guam’s economic security, reinforce regional supply chain resilience and fulfill our growing role as a strategic gateway in support of our nation’s security interests in the Indo-Pacific," Respicio said.

Moody's noted that the port remains critical to Guam's economy, handling more than 90 percent of the island's imported goods.

The report also highlighted the Port's healthy liquidity, declining debt profile and expectation that the existing tariff framework will support long-term financial sustainability as revenue adjustments move forward.

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