Fitch: Port Credits Resilient in Face of Labor Action

NEW YORK--()--Fitch Ratings has published a new special report titled 'Port Credits Resilient in Face of Labor Action'. The report provides a summary of the recent eight-day strike at the Ports of Los Angeles and Long Beach by the Office Clerical Unit (OCU) of the International Longshore and Warehouse Union (ILWU). The report also provides a brief analysis of the expected credit impact of a strike or work stoppage.

While the strike has proved disruptive to logistics in the San Pedro Bay port complex and the Southern California region more generally, Fitch Ratings does not see a prolonged credit impact from the work stoppage. Key sources of financial protection enjoyed by both the Port of Long Beach and the Port of Los Angeles (both rated 'AA' by Fitch) include contractual minimum guaranteed revenues and flush cash positions.

While labor issues represent an ongoing operational risk for maritime ports, it is Fitch's view that this risk can largely be mitigated through strong contracts with terminal operators and maintenance of adequate liquidity reserves, allowing ports to weather short-term interruptions in operations.

The full report is available at 'www.fitchratings.com'.

Additional information is available on www.fitchratings.com.

Applicable Criteria and Related Research:

--'Rating Criteria for Ports' (Sept. 28, 2012);

--'Rating Criteria for Infrastructure and Project Finance' (July 12, 2012).

Applicable Criteria and Related Research: Port Credits Resilient in Face of Labor Action -- Liquidity, Contracts Provide Stability

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696692

Rating Criteria for Ports

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688850

Rating Criteria for Infrastructure and Project Finance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Emma W. Griffith
Director
+1-212-908-9124
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Seth Lehman
Senior Director
+1-212-908-0755
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com

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Contacts

Fitch Ratings
Emma W. Griffith
Director
+1-212-908-9124
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Seth Lehman
Senior Director
+1-212-908-0755
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com