PHOENIX - The Port of Oakland received an upgrade from Moody's Investors Service, which bumped nearly $1 billion of the port's debt up a notch.

The rating agency moved $656 million of senior lien bonds to A1 from A2, $324 million of intermediate lien bonds to A2 from A3 and a subordinate lien bank note rating to A3 from Baa1. The new ratings, first announced late last week, all have a stable outlook.

The Yang Ming Marine Transport Corp. Oakland cargo ship is guided into the Port of Oakland by a pair of AmNav tug boats in Oakland, California, U.S., on Thursday, Sept. 29, 2016.
The Port of Oakland, Calif. received a rating upgrade from Moody's Investors Service. Bloomberg

The port operates one of the West Coast's major container shipping operations and Oakland International Airport.

“The stable outlook reflects our expectation of stability in air passenger traffic and marine cargo volume; ongoing vitality in the regional economy; and manageable risk in the maritime division due to the landlord model employed, which will support financial stability through a period of operational transition and potential short term revenue volatility,” Moody’s said in its announcement.

The upgrade comes after the port’s June 8 announcement that its import volume reached a two-year high in May, rising 1.4% year-over-year.

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