Bruce Barnard | Apr 11, 2011 10:38AM EDT
Moody’s upgraded the credit rating of DP World a notch to investment grade.
The ratings agency April 11 cited a "rapid recovery" in the global container terminal operator's performance.
Moody's lifted the ratings on the Dubai-based firm's $3.25 billion of long term borrowings to Baa3 from Ba1. Moody's said the outlook is stable.
The ratings "are sustained by the company's diversified global operations, the expected growth in international container traffic as well as solid profitability and a strong liquidity profile," according to Franck Nowak, associate analyst at Moody's in Dubai.
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DP World news from JOC:
DP World Plans Reverse Stock Split
DP World is expected to "remain within the boundaries of its leverage target by avoiding large acquisitions, and gradually improving cash generation."
DP World boosted 2010 earnings 35 percent from a year ago to $450 million from $333 million on a 9 percent increase in revenue to $3.2 billion as volume at its 28 consolidated terminals rose 9 percent to 27.8 million 20-foot equivalent units.
The company, which is quoted on Nasdaq Dubai, said in March that it is on track for a secondary listing in London later this year.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.
