DUBAI: Ratings agency Moody's on Tuesday upgraded the outlook for Dubai's port operator DP World from stable to positive after the global firm reported substantial recovery in container trade. Moody's Investors Service said that it affirmed DP World's Ba1 issuer rating and the Ba1 rating for DP World Sukuk (Islamic bonds), while it changed the rating outlook from stable to positive. The change was in response to the solid operating performance this year by the world's fourth biggest port operator, in addition to the company's intention to refinance during 2011 a three-billion-dollar syndicated revolving credit facility that matures in October 2012, Moody's said. The agency also cited a recent agreement between DP World's parent firm, Dubai World, and its creditors, to reschedule some 24.9 billion dollars of debt, saying it was “achieved without any impact on DP World's financial or operational profile”. “The outlook change to positive for DP World reflects Moody's view that the improving fundamentals for port operators - with increasing volumes of global trade flows, especially in emerging markets - are likely to remain favorable over the medium term,” said Martin Kohlhase, assistant vice president of Moody's Corporate Finance Group in Dubai. DP World said last month that its global container volumes in the third quarter of this year were back to the peak levels registered in 2008. The government-controlled company which is partly listed in Dubai said its 50 operating terminals handled 13 million TEU (twenty-foot equivalent container units) in the third quarter of 2010, up 14 percent from the corresponding period last year. – Agence France
