Press Release

The Port of San Francisco announced on January 31 that Moody’s Investor Service, a major credit rating agency, has upgraded the Port’s credit rating.

Moody’s upgraded the credit rating because of the Port’s strong leasing portfolio that includes many long- term agreements, managed expenses and very strong debt service coverage, policies to invest in capital renewal, and support from City voters for a $425 million bond to repair the Embarcadero Seawall. According to Moody’s, the upgrade reflects “the port’s strong market position, serving as a waterfront gateway to the city, a commercial destination, and an amenity for commuters, tourists and residents. The port’s net revenues have a high degree of predictability, given long-term contracted revenues for a substantial portion of the port’s portfolio and manageable operating expenditures.”

“The Port of San Francisco is in a strong financial position and is poised for continued growth,” said Elaine Forbes, Executive Director of the Port of San Francisco. “I am proud that through hard work, financial discipline and careful management, the Port’s credit rating has been upgraded. We will build on this strong financial foundation to tackle significant capital needs due to aging infrastructure. Smart investments will ensure that the waterfront is accessible and resilient while maintaining our maritime history and tradition today, and for generations to come.”

Moody’s has assigned an Aa3 to the Port’s $11 million Refunding Revenue Bonds Series 2020A and $13 million Refunding Revenue Bonds Series 2020B. Moody’s also upgraded the Port’s outstanding revenue bonds to Aa3 from A1 and assigned a stable outlook to the Port’s ratings. The upgrade applies to $50.1 million in senior parity outstanding revenue bonds, including bonds being refunded.

The stable outlook reflects Moody’s view that the port will generate ongoing strong net revenues given the real estate market and debt service on existing bonds. In addition, the Port’s continued investment in Port facilities in the 10-year capital plan without new Port revenue bonds, demonstrated to Moody’s the strength of the Port’s portfolio and potential for increased growth and opportunity.