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S&P Global Ratings affirms Guam port’s 'A' rating, maintains stable outlook



By Pacific Island Times News Staff


S&P Global Ratings has reaffirmed the Port Authority of Guam’s long-term ‘A’ rating on its series 2018 Port Revenue Bonds and maintained its outlook at stable, as per the latest assessment.


“The stable outlook reflects our expectation that port activity will continue to demonstrate resilience in the aftermath of Typhoon Mawar, and remain near current levels,” the S&P Global Ratings report states. “The outlook also reflects our expectation that key financial metrics will remain sufficient for the rating and the port's debt capacity will remain strong.”


The stable outlook reflects S&P’s expectation that the Port will continue to demonstrate resilience in port activity and maintain sound financial metrics, especially following the impact of Typhoon Mawar in 2023. The Port’s debt capacity and coverage ratios have also remained strong, which is essential for continued operations and funding future infrastructure projects.


“The rating reflects our opinion of an island port that has relatively stable container volumes given its role as the sole provider of maritime facilities and services in Guam and stabilizing military presence due to its strategic importance to the U.S. military, despite relatively high shipping carrier concentration and being located in a region prone to severe weather events,” the S&P Global Ratings report states.


“The rating also reflects our expectation that the authority's DSC (as per our calculations), debt burden, and liquidity will remain at levels we consider strong, low, and adequate, respectively.”


According to the S&P report, key credit strengths include:

  • Relatively stable container volumes given its virtual monopolistic position as the sole provider of maritime facilities and services in Guam and its strategic importance to the U.S. military;

  • Strong coverage (S&P Global Ratings-calculated) that S&P expects will be maintained above 1.25x;

  • Robust liquidity, with days cash on hand exceeding 200 days the past two fiscal years, that S&P expects to remain and a low debt burden and anticipated low additional debt needs.


“Our high rating is proof positive of the strong management and dedicated leadership at the Port, and it’s a direct reflection of our Port Strong team’s commitment to Guam’s future," said Rory Respicio, general manager.


"This positive rating from S&P Global reinforces the strides we’re making toward operational excellence and fiscal health, positioning the Port as a reliable logistics hub for Guam’s commercial and military stakeholders alike," he added.





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