Higher bond rating could help boost Port of Galveston infrastructure

From left to right Carnival's Magic and the Royal Caribbean's Liberty of the Seas cruise ship sit in port on Sunday , February 7, 2016 in the Port of Galveston in Galveston, Texas. (Photo: Thomas B. Shea/For the Chronicle) less From left to right Carnival's Magic and the Royal Caribbean's Liberty of the Seas cruise ship sit in port on Sunday , February 7, 2016 in the Port of Galveston in Galveston, Texas. (Photo: Thomas B. Shea/For ... more Photo: Thomas B. Shea, Freelance Photo: Thomas B. Shea, Freelance Image 1 of / 14 Caption Close Higher bond rating could help boost Port of Galveston infrastructure 1 / 14 Back to Gallery

The Port of Galveston's bond rating has been upgraded, which could help the port receive lower-cost financing for infrastructure improvements on roads, docks and other equipment.

The port recently announced that Standard and Poor's Global upgraded the port's bond rating to an "A-". It was previously a "BBB+".

"Upgrading the port's bond rating has been a goal of mine since arriving here at the Port of Galveston," port director and CEO Rodger Rees said in a news release. "This new rating confirms the Port's financial stability and growth potential. The upgrade allows the port to lower its borrowing costs as we seek financing for our much-needed infrastructure improvements."

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The improved rating reflects the port's position as a a major cruise terminal -- fourth busiest in the U.S. -- and its strong service area economy. The port was also upgraded for having low industry risk relative to other sectors and for having strong management and governance.

If the debt service coverage materially improves, S&P could raise the port's rating in the next two years, according to the news release.