Moody's rates LA Gateway bonds A3

Moody's Investors Service said it assigned an initial A3 rating to the proposed $456 million senior secured bonds due in 2046 to be issued by LA Gateway Partners, LLC.

The outlook is stable.

The proceeds will be used to partially fund construction of the project.

LA Gateway Partners is a bankruptcy remote special purpose vehicle, owned indirectly by funds managed by Fengate Asset Management and PCL Investments USA, LLC.

The rating benefits from the long-term project agreement with Los Angeles to design, build, finance, operate and maintain a facility at LAX Airport for a contract length of 28 years after financial close, Moody's explained.

The project's credit profile is constrained by a high initial leverage of 92.5% of total capitalization, the agency said.

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