Dubai - Mubasher: Fitch Ratings recently upgraded DP World Limited Group’s long-term issuer default rating (IDR) to BBB from BBB-, while the short-term IDR was upgraded to F2 from F3, DP World revealed in a statement on Sunday.
The ratings agency gave a ‘stable’ outlook for the IDRs.
The upgrade follows Fitch’s announcement in November 2015 that DP World’s outlook had been revised to Positive from Stable.
“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 the long-term maturity of its main flagship operation in Jebel Ali, Dubai, UAE,” according to the statement.
DP World’s current ratings for all three entities DP World Limited, DP World Sukuk Limited, and DP World Crescent Limited, are rated by Moody’s and Fitch as Baa3 and BBB, respectively for the long-term IDR.
Moody’s has no rating for DP World’s short-term IDR, while Fitch has it at F2. Both ratings agencies have given DP World a ‘stable’ outlook.
The upgrade reflects Fitch’s recognition of the Dubai-based operator’s portfolio strength and resilience, which has shown both favourable and challenging market conditions alongside the company’s continued progress and long-term growth potential, said DP World Group chairman and CEO Sultan Ahmed Bin Sulayem.
