...The rating upgrade reflects the City of Long Beach marina enterprise's improved financial profile. This is evidenced by declining leverage, rising and robust liquidity levels, and an established market position within the competitive Southern California marina landscape. The marina demonstrates its competitive edge through an ample wait list for slip rentals across slip sizes, consistently high occupancy levels, competitive slip rental rates and maintenance of stable financial performance. Fitch Ratings believes these factors will allow the rating case forward-looking 5-year average debt service coverage ratio (DSCR) to remain at 1.4x, appropriately positioning the rating at the `BBB+' level. The rating also reflects the system's long-dated debt tenor and narrow revenue stream, while recognizing that it continues to benefit from robust rate-making flexibility. This is demonstrated by continued historical rate increases and healthy coverage levels. The marina's current capital needs are...
