Moody's changes US ports sector outlook to negative

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jun 2009

Moody's Investors Service said on Monday it changed the outlook for the U.S. port industry to negative from stable, citing economic trends, including the recession and weak consumer confidence. 'The breadth and depth of the economic downturn may result in fundamental shifts in trade patterns, and negatively affect the competitive position of some ports,' said Baye Larsen, a Moody's analyst, in a statement. 'While many ports entered the recession with strong financial metrics, these will likely diminish depending on the length and depth of the downturn.'
The outlook reflects the rating agency's expectations over the next 12 to 18 months. Moody's rates 53 ports with about $6.5 billion of outstanding debt, ranging from Ba3 to Aa2.
Moody's said that the slowing activity at ports is allowing for capital projects aimed at improving capacity and operating efficiencies.
'However, some ports are considering relatively large debt loads that will further narrow their financial metrics,' said Larsen.

Source: Reuters