Rating agency Standard & Poor’s has affirmed investment-grade credit rating of A+ with a stable outlook for Canada’s Halifax Port Authority.
The stable outlook reflects the agency’s view of the authority’s prudent financial management to date and the expectation that it will not issue significantly more debt in the next two years than it assumes in its current capital plan.
Standard & Poor’s also expects that the authority will continue to record moderate cargo and revenue growth in the two-year outlook horizon, as well as produce strong annual debt service coverage ratios of about 15x despite its debt peaking in 2015.
The ratings also reflect the agency’s opinion of a “moderately high” likelihood that the federal government of Canada would provide extraordinary support in the event of financial distress.
”The diverse revenue streams at the Port of Halifax help to provide long term stability,” said Paul MacIsaac, Senior Vice President, Halifax Port Authority.
”Our diversification strategy involves the development of all core business lines – cargo, cruise and real estate.”