Fitch upgrades DP World to BBB+

Fitch Ratings said it upgraded DP World Ltd.’s long-term issuer default rating, medium-term note program and senior unsecured notes ratings to BBB+ from BBB.

The outlook is stable.

The agency also lifted DP World Sukuk Ltd.’s senior unsecured rating and DP World Crescent Ltd.’s $3 billion global sukuk trust certificate issuance program to BBB+ from BBB.

Fitch said the upgrade reflects the group's solid and stable cash flow generation and our view that flexibility embedded in group's expansionary plan will allow DP World to maintain Fitch-adjusted leverage below 4.5 times.

In the agency’s view, this leverage threshold positions the rating at BBB+. It balances DP World's largely diversified business profile with its acquisitive profile and corporate-like, bullet and uncovenanted debt structure, which is weaker than peers like ABP (A-/negative).

The ratings reflect DP World's standalone credit profile and do not include support or constraint from its ultimate parent, the Dubai government, Fitch noted.

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