Fitch Upgrades Namibian Ports Authority to ‘AAA(zaf)’; Outlook Stable
Fitch Ratings has upgraded the National Long-Term Rating of Namibian Ports Authority (Namport) to ‘AAA(zaf)’/Stable Outlook from ‘AA-(zaf)’/Stable Outlook. Namport’s National Short Term Rating has been affirmed at ‘F1+’.
KEY RATING DRIVERS
The rating actions follow the upgrade of Namibia’s National Long-Term ratings to ‘AAA(zaf)’/Stable Outlook from ‘AA-(zaf)’/Stable Outlook. For further details, see Fitch Upgrades Namibia’s National Rating to ‘AAA(zaf)’; Outlook Stable, dated 29 April 2020 at www.fitchratings.com. Fitch’s assessment of fundamental issuer-specific credit considerations remains unchanged. For a detailed rating rationale, please see ‘Fitch Affirms Namibian Ports Authority at ‘AA-(zaf)’; Outlook Stable’ dated 18 December 2019, also on the website.
The ratings of Namibian Ports Authority (Namports) are equalised to those of the Namibian sovereign, based on Fitch’s assessment of its strong links with its sole shareholder, the government of Namibia, in accordance with the agency’s GRE criteria. The Namibian government unconditionally guarantees the punctual debt service of Namport’s AfDB loan, which represented more than 90% of Namport’s debt at September 2019.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
A further rating upgrade is not applicable as the rating is AAA (zaf).
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A decline in government support leading to weaker links under the GRE criteria or a negative rating action on Namibia’s sovereign rating would likely result in negative rating action on Namport.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Public Finance issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from ‘AAA’ to ‘D’. Best- and worst-case scenario credit ratings are based on historical performance.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The rating is rated under Government-Related Entities Criteria, and equalised to Namibian Sovereign rating.
Source: Ficth Ratings