Dubai-based port and terminal operator DP World has seen its Long-Term Issuer Default Rating (IDR) upgraded to BBB+ from BBB and Short-Term IDR affirmed at F2 by ratings agency Fitch Ratings.
Fitch Ratings added that the rating outlook is stable. This follows on Fitch’s rating upgrade in August 2016 from BBB- to BBB and reflects DP World’s solid performance and stable cash flow generation.
The ratings agency also notes DP World’s flexibility in its expansionary plan to maintain leverage below the threshold of 4.5x, well diversified and resilient portfolio and pricing power due to its significant exposure to origin and destination traffic.
According to Moody’s ratings agency, DP World’s current ratings for three entities DP World Limited, DP World Sukuk Limited, and DP World Crescent Limited are Baa2 with a stable outlook.
“To receive consecutive upgrades in the current market conditions is a true recognition of the strength and resilience of our business alongside our long-term growth potential and continued progress to create the most productive, efficient and safe trade solutions globally. We remain committed to delivering growth through continued disciplined investments and managing leverage,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said.