Printer Friendly

OXPORT OF SEATTLE, WASH.'S REV. RFDG. BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 5 /PRNewswire/ -- The Port of Seattle, Wash.'s $21 million junior lien revenue refunding bonds, series 1993A and $60 million junior lien revenue refunding bonds, series 1993B are rated AA-' by Fitch. The AA-' rating is also affirmed on $361 million outstanding parity junior lien revenue bods. The series 1993A and 1993B bonds will refund the port's outstanding series 1973 and series 1976 senior lien revenue bonds.
 In addition to achieving some present value savings, this refunding will decrease the port's outstanding senior lien principal from 38 percent to 24 percent of its aggregate outstanding revenue debt; the senior lien is closed. The resultant decrease in senior lien debt service generates significantly higher projected debt service coverage on the remaining $121 million outstanding senior lien bonds. Therefore, Fitch is raising the rating on the port's outstanding senior lien revenue bonds to AA' from AA-'. The credit trend for the port's revenue bonds remains stable. The 1993 bonds were offered through negotiated sale by a syndicate led by Goldman, Sachs & Co. on Feb. 2, 1993.
 The foundation for the ratings is the diversity of the Port's revenue sources which are derived from the marine port terminals (40 percent), Sea-Tac International Airport (60 percent) and an ad valorem tax levy in King County. These three solid sources of revenue lend resiliency to the Port's ability to service its revenue debt as exhibited by its historical aggregate debt service coverage in excess of 2.00 times (x) over the past decade, including the period of recession in the early 1980's as well as the current recession.
 Sea-Tac's strengths include its chiefly origination and destination (O&D) air service (70 percent) to a strong local economy, the absence of any one airline with a dominant market share and no comparable airports within convenient driving distance. These strengths are counterbalanced by residual use and lease agreemet with the airlines that inherently limit the port's upside revenue potential from airport operations as well as requiring Majority-In-Interest approval from the signatory airlines for major projects.
 The Marine Division's strengths include its proximity to the Pacific Rim, its naturally deep harbors which need little costly dredging, its extensive transshipment facilities and relatively uncongested distribution capabilities and sophisticated electronic data information systems. Offsetting these advantages are the marine division's vulnerability to its nearby competitor, the Port of Tacoma, as well as the other West Coast ports and its dependence on five foreign countries for approximately 85 percent of its trade.
 -0- 2/5/93
 /CONTACT: Andrea R. Bozzo of Fitch, 212-908-0515/


CO: Port of Seattle ST: Washington IN: SU: RTG

TM -- NY074 -- 3764 02/05/93 18:11 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 5, 1993
Words:443
Previous Article:AMERICAN STOCK EXCHANGE DAILY REPORT
Next Article:NEW YORK STOCK EXCHANGE CLOSING, FRIDAY, FEB. 5 /PRN/


Related Articles
PORT OF SEATTLE, WASH., $139 MILLION REVENUE BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA GENERAL OBLIGATION, SOME AGENCY RATINGS ON FITCH ALERT NEGATIVE -- FITCH FINANCIAL WIRE --
WASHINGTON $50 MILLION GO BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA RANS RATED, GO DEBT LOWERED TO 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
WESTMINSTER (CO) GENERAL OBLIGATION BOND'S RATED 'AA-' BY FITCH FITCH FINANCIAL WIRE
GRANT COUNTY (WA) PUBLIC UTILITY DISTRICT SECOND SERIES BONDS 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA $1.3 BILLION GO BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
LACLEDE GAS $40 MILLION FIRST MORTGAGE BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA'S $400 MILLION G.O. BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters