This month, Standard and Poor’s Global Ratings increased the Port of Lake Charles’ bond rating from A- to A+, port officials announced on Wednesday.
The credit agency increased the port’s bond rating because of “strong management” and “extremely strong economic fundamentals,” according to a news release. A report by S&P commended the port board’s record of operating facilities and managing the Lake Charles Harbor and Terminal District’s finances.
“We expect it will manage the (capital improvement plan) prudently,” the report reads. S&P also mentioned how the port’s long-term lease agreements with various tenants keep the local economy stable.
This is the second credit rating agency to upgrade the port’s bond rating. Earlier, Moody’s Investor Service upgraded the port’s bond rating from A3 to A2. The decision was made because of the port’s “strong financial position” and “conservative debt management strategy,” according to a statement on Moody’s website.
“The stable outlook reflects Moody’s expectation that financial performance, including very strong coverage ratios and liquidity, will continue over the near term,” the statement reads.
Port Board President Mike Eason said bond rating upgrades like this are unique.
Bill Rase, port executive director, said the upgrades from both agencies “speaks to its stability and viability for the future.”
“It’s a great sign that good things are happening here, and even better things are coming,” he said.