On June 20, 2008, Moody’s Investors Service upgraded the ratings assigned to the Board of Trustees of the Galveston Wharves (Port of Galveston) Revenue Bonds 1998 Series A, 1999 Cruise Terminal and 2004 Series A and B Refunding Bonds to Baa1 from Baa2.  The upgrade is based on the Port’s improved and stabilized market position in bulk cargo and substantial growth in the cruise industry market.  In addition, Moody’s Investor Service assigned a Baa1 rating to the recently issued, $28.2 million Wharves and Terminal Revenue Bonds.

The proceeds from this bond issue will be used to revitalize and modernize the Port’s aging infrastructure including deepening the Galveston Harbor Channel to 45 feet and modernizing channel front berths in order to accommodate larger oceangoing vessels.

The Port of Galveston is Texas’ gateway for cruise sailings and international trade. Located at the entrance to Galveston Bay, the Port leases and maintains facilities situated on the north side of Galveston Island and on adjacent Pelican Island. The Galveston Island operations are a diversified mix of traditional and non- traditional cargo operations including roll on-roll-off cargo, dry bulk, export grain, refrigerated fruit, general cargo, and project cargo. In addition, the Port handles over 1 million cruise-passengers annually. During 2006 and 2007 the Port of Galveston was the 4th busiest cruise port in the United States and 11th in the world.