Fitch Revises NamPort’s Outlook to Positive

Fitch Ratings has revised the outlook on Namibian Ports Authority’s National Long-Term rating to positive from stable. The agency has affirmed NamPort’s National Long-term rating at ‘A-(zaf)’ and National Short-Term rating at ‘F2(zaf)’.
The revision of the outlook to positive reflects the expected strengthening of the links between NamPort and its sole shareholder, the Namibian sovereign (‘BBB-’/’BBB’/’AA-(zaf)’/Stable), given that the state plans to provide guarantees for the debt-funded portion of the capacity expansion project and maintain other forms of financial support.
NamPort’s rating continues to benefit from strong parental support as Fitch considers the legal, operational and strategic ties between the company and its sole shareholder to be strong. The company is rated on a top-down basis from its shareholder, and Fitch assesses that NamPort’s
standalone rating would be significantly below the support-driven rating level. NamPort remains a strategic asset to the Namibian economy, operating the country’s two ports at Walvis Bay and Luderitz. Fitch believes NamPort is likely to play a critical role in infrastructure development given its planned port expansion project of N$3 billion in the next three years.