Fitch Doesn't Expect Potential Longshoremen's Strike to Affect Port Credit Ratings
Port credit ratings are likely to remain resilient in the face of an East Coast longshoremen's strike, Fitch Ratings said in a new report. It said the potential remains for a work stoppage at the end of the 90-day extension…
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period, (see ITT's Online Archives 12092101, but contingency plans at potentially affected ports have envisaged 10-15% cargo diversion over a month or so of stoppage, which is well below throughput losses modeled in Fitch's rating case scenarios for ports. That, plus the levels of liquidity maintained by ports and the fixed rental payments generally seen as the main source of revenue for ports, would minimize the credit impact expected from any future work stoppage, the report said.