AD Ports gets its first-ever rating from Moody’s at A1 with a stable outlook

AD Ports gets its first-ever rating from Moody’s at A1 with a stable outlook

AD Ports Group, based in Abu Dhabi, has received an A1 credit rating with a stable outlook from Moody’s. This rating highlights the company’s strong financial performance and positive growth outlook.

Moody’s rating

This is the first time AD Ports has been rated by Moody’s, though it already has investment-grade ratings from Fitch and S&P Global.

Moody’s explained that AD Ports’ A1 rating is based on its solid credit strength and its connection to the government of Abu Dhabi. The rating also reflects the high level of support the company would receive from the Abu Dhabi government, if needed, through the Abu Dhabi Developmental Holding Company (ADQ).

This rating shows that AD Ports is important to Abu Dhabi’s economy and plays a key role in the Emirate’s efforts to diversify and boost global trade.

AD Ports’ Assets

AD Ports’ credit strength is supported by several key factors, including its ownership of Khalifa Port, the largest port in Abu Dhabi, along with five other ports and the Khalifa Economic Zone Abu Dhabi (KEZAD), a large industrial and free zone area next to Khalifa Port.

Moody’s noted that AD Ports has strong liquidity, meaning it is well-equipped to meet its financial obligations over the next year. This is supported by its cash reserves of $681 million (AED 2.5 billion) as of September 2024, $272.3 million (AED 1 billion) in unused credit lines, and an expected $1.4 billion (AED 5 billion) from operating cash flow and government reimbursements for capital expenditures.

AD Ports’ CFO, Martin Aarup, said that this rating improves the company’s market reputation and gives it better access to capital for future growth.

The A1 rating from Moody’s is the fifth-highest on their 21-notch global scale, which ranges from Aaa (the highest) to C (the lowest). An A1 rating indicates that the company has a low credit risk and is considered a solid investment.

Q3 Results

For the third quarter, AD Ports reported record revenue of $1.3 billion (AED 4.66 billion) and a profit of $121.2 million (AED 445 million), driven by strong growth in its core businesses.

Published: 11th December 2024

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