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Fitch Gives Alameda Corridor a Stable Rating

[ November 10, 2015   //   ]

Fitch Ratings has affirmed the following ratings for Alameda Corridor Transportation Authority, CA (ACTA):
–$796 million senior revenue bonds series 1999A, 1999C, 2013A at ‘A’;
–$746 million subordinate revenue bonds series 2004A and 2004B at ‘BBB+’.
The Rating Outlook on all bonds is Stable. ACTA also has $83.7 million in unrated series 2012 bonds, which are on parity with the rated senior revenue bonds.
The rating reflects a vital rail corridor that handles nearly a third of throughput for the San Pedro Bay ports (Port of Los Angeles and Port of Long Beach, both rated ‘AA’/Outlook Stable). Backstop commitments from each of the ports provide stability to the rating and serve to partially offset ACTA’s high financial leverage and exposure to changes in throughput. ACTA is particularly sensitive to changes in 20-foot equivalent unit (TEU) volumes due to its escalating debt service profile. ACTA is considering options to restructure, modify, or refund a portion of its outstanding bonds; ACTA financings are subject to review and approval by the boards of the San Pedro Bay ports.

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