The rating on Los Angeles Harbor Department, Calif.'s bonds, issued for the Port of Los Angeles, reflects * Strong market position and demand for port facilities, * Very good financial performance and debt service coverage on an historical and projected basis, * Proximity of the port to the Pacific Rim and the large southern California economy, and * Solid legal provisions under this indenture that include an historic 1.25 times (x) additional bonds test and 1.25x rate covenant. Credit weaknesses include historic transfers and projected ongoing near-term payments to the city of Los Angeles that will likely lead to the maintenance of lower fund balances by the harbor department, less money available for pay-as- you-go capital financing, and ultimately a
