Tourism & Cruises

Was the PortMiami dredge a good investment? Rating firm has an answer

The dredger Terrapin Island sits in the center where it will deepen PortMiami in order to accommodate Super Tankers in the future in this Dec 6, 2013, file photo. Moody’s rating service has upgraded PortMiami’s credit profile from ‘stable’ to ‘positive.’
The dredger Terrapin Island sits in the center where it will deepen PortMiami in order to accommodate Super Tankers in the future in this Dec 6, 2013, file photo. Moody’s rating service has upgraded PortMiami’s credit profile from ‘stable’ to ‘positive.’ EL NUEVO HERALD

PortMiami’s credit profile got a vote of confidence this week from credit ratings agency Moody’s Investors Service.

Moody’s boosted PortMiami’s outlook from “stable” to “positive,” according to a press release. Its credit profile is rated “Baa1 positive.”

The upgrade follows announcements that several major lines will be basing additional cruise ships from Miami, which is building new terminals for both Royal Caribbean and Norwegian Cruise Line. The port, which is owned and operated by Miami-Dade County, remains the world’s busiest cruise ship terminal when measured by the number of passengers.

In addition, a massive dredge project completed in 2016 has brought 200 deep-draft cargo vessels to the port last year, according to a release by Miami-Dade County.

Wrote Moody’s, “around 70-80 percent of future expected operating revenue over the next few years is covered by minimal annual revenue guarantee contracts, which provide substantial revenue and cash flow visibility” — a strong liquidity level that supports the port’s five-year, $493 million capital plan.

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