Port of Seattle Bonds Affirmed

Fitch affirmed the “AA” rating of the Port of Seattle, Washington’s outstanding $895,465,263 senior lien revenue bonds.

The rating affirmation is in response toFebruary’s magnitude 6.8 earthquake in the Puget Sound area, which did damage to Port of Seattle facilities, including Seattle-Tacoma International Airport (Sea-Tac) and the Seaport.

Preliminary damage assessments totaled $71.5 million, with an estimated $32.4 million in damage at the Airport and $39.1 million at the Seaport. The Port will pay for damage assessment and repairs primarily through insurance coverage and application of Federal Emergency Management Agency funds.

The Port’s property insurance includes business interruption coverage that covers loss or damage to property, such as loss or damage from flood or earthquake, up to $300 million, with a deductible of $250,000. Earthquake coverage is attached to each property policy.

The Port’s current property carriers are Lexington Insurance Co., Agricultural Insurance Co., Greenwich Insurance Co., and FM Global, which are handled through the Port’s insurance broker Aon.