Related Fitch Ratings Content: U.S. and Canadian Ports – Peer Review (Attribute Assessments, Metrics and Ratings)

Fitch Ratings-New York-17 March 2022: Pandemic pressures are receding for U.S. and Canadian ports, according to Fitch Ratings in its latest sector peer review. Fitch has revised its Rating Outlook for several North American ports to Stable from Negative over the last year.

Cargo ports have been particularly resilient, with preliminary 2021 throughput figures showing performance at or surpassing pre-pandemic levels for container cargo at Fitch-rated ports. Even cruise ports, which were harder hit by the pandemic, are showing signs of recovery.

“Challenges remain in terms of supply chain and congestion management pressures for cargo operations and passenger recovery for cruise facilities, but it appears the worst is over,” said Senior Director Emma Griffith.

Most Fitch-rated ports in the U.S. and Canada continue to be rated ‘A’, exemplifying the sector’s trademark resiliency. Ratings have remained remarkably steady for ports throughout the pandemic with all but one port entering 2022 with a Stable Outlook. Fitch downgraded just one port during the last year (Port Canaveral) and only one other has a Negative Outlook (PortMiami).

The fiscal picture is also stabilizing for Canadian ports, with Fitch assigning a ‘BBB’ rating and a Stable Outlook to Montreal Gateway Terminals (MGT). This reflects MGT’s strong market position as one of two operators at Port of Montreal, the primary gateway port for eastern and central Canada.

Fitch has also released an update to the interactive peer study for standalone U.S. and Canadian port credits, available in the ‘U.S. and Canadian Ports – Fitch Analytical Comparative Tool (FACT)’. Going forward, Fitch will conduct annual peer reviews using a more granular five-point volume assessment scale as detailed in its ‘Transportation Infrastructure Rating Criteria Exposure Draft’ published last month.
Source: Fitch Ratings