Revenue stability as a result of either strong volume or price attributes, well-defined capex plans, leverage relative to revenue risk and long-term access to funding explain the rating differences between Asia-Pacific (APAC) seaports, says Fitch Ratings.
The APAC peer group includes six large and diversified port networks – two in India, two in China, one in Australia and one in Indonesia – as well as one container port terminal in India, and the operator of the largest coal export port in Australia. These assets are fully operational and are exposed to volume variability, although the ports’ roles, diversity and the economic underpinnings of served markets limit comparability. The peer group also includes three coal port export terminals in Australia, each with a different price framework. The more network-like features of coal port export terminals limit direct comparison with other rated ports.
The ratings within the peer group range from ‘A+’ to ‘BB+’, while the Standalone Credit Profiles for ports rated under Fitch’s Government-related Entities Rating Criteria range from ‘a’ to ‘b’. All ratings are on Stable Outlook, except for Newcastle Coal Infrastructure Group Pty Ltd (senior secured rating: BBB-/Positive). The Stable Outlooks reflect robust sector fundamentals as result of stronger post Covid-19 pandemic demand.
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The report, Asia-Pacific Seaports – Peer Review 2023’, compares the Asia-Pacific seaport peer group in terms of qualitative key rating drivers, financial metrics and rating positioning. The report is available by clicking the link above.
Source: Fitch Ratings