The credit rating agency Fitch Ratings upgraded Wednesday DP World Sokhna Limited’s long-term issuer default rating (IDR) to BBB from BBB- indicating good credit quality. Fitch also upgraded DP World’s short-term credit from fair to good and maintained that the outlook is stable.
The upgrade follows the Fitch announcement in November 2015 that DP World’s outlook had been revised from “stable” to “positive”. It reflects the global trade enabler’s strong performance and stable cash flow generation supported by its geographical diversification, high utilisation rate of terminals, and long-term maturity of its main flagship operation in Jebel Ali, Dubai, the UAE.
Moody’s maintained the same conclusion as Fitch, giving a rating of Baa3 and affirming a stable outlook for DP World and for all three entities—DP World Limited, DP World Sukuk Limited, and DP World Crescent Limited.
Sultan Ahmed Bin Sulayem, group chairperson and CEO of DP World said: “The strength and resilience of our portfolio has shown in both favourable and challenging market conditions alongside our continued progress and long-term growth potential. We remain committed to delivering growth through continuing disciplined investments and managing leverage.”
The Egyptian private shipping company DP World Sokhna is currently operating in marine and inland terminals, maritime services, and logistics while being supported by 50 related businesses in 40 countries. DP World is currently in the process of expansion, which will increase their handled shipping of 79.8m TEU (twenty-foot equivalent units) by an additional 100m TEU by 2020.