April 23 (Bloomberg) -- The Port of Long Beach, California, the second-largest U.S. container port, is selling $59.9 million in revenue bonds to refinance debt used for upgrades as cargo volumes recover from recessionary lows.
Fitch Ratings assigned its second-highest grade, AA, to the securities, which will be used to refund $88.6 million in revenue bonds, the rating company said.
While competition and trends in international trade can lead to wide swings in cargo volume, the port is insulated by long-term contracts with tenants, Fitch said.
Container volume at the Port of Long Beach has risen since July 1, with twenty-foot equivalent units or TEUs up 2.3 percent through February over the previous year, Fitch said.
The Port of Long Beach is adjacent to the Port of Los Angeles, the busiest U.S. port as measured by cargo volume. Combined, the two constitute the seventh-busiest seaport complex in the world, according to Fitch.
To contact the reporter on this story: James Nash in Los Angeles at email@example.com
To contact the editors responsible for this story: Stephen Merelman at firstname.lastname@example.org Pete Young, Mike Millard