Namibian Ports Authority (Namport) has received an affirmation of its National Long-Term Rating at ‘AA+(zaf)’ with a Stable Outlook, and its National Short-Term Rating at ‘F1+(zaf)’ by Fitch Ratings, a global ratings agency.
Fitch’s Government-Related Entities (GRE) Rating Criteria considers the port’s credit profile and its strong linkages to the Namibian sovereign, which has been affirmed at BB-/Stable/AA+(zaf)/Stable.
Fitch has noted that NamPort’s Status, Ownership and Control is ‘Strong’ due to the government’s 100% ownership, and broad operational and financial oversight by the sovereign.
The agency views the government’s Support Track Record as ‘Very Strong’ due to the government guarantee and historical financial contributions to NamPort.
Fitch has also stated that the Socio-Political and Financial Implications of Default are ‘Strong’, as a NamPort default could have an impact on market access, cost, and financing options for Namibia.
Fitch also notes that capacity constraints have been offset by the expansion of the port and the operationalisation of the new container terminal at a cost of N$4 billion.
“However, the economic environment and cargo concentration on fuel and mining could present challenges to potential growth over the long term.Namport’s facilities serve as a secondary port of call for its region, with regional competition from the ports of Pointe Noire and Durban, contributing to volume volatility. This is offset by Namport’s competitive services, efficiencies and good linkages to the hinterland. Regional economic uncertainty together with capacity constraints have also contributed to volume volatility.”
In the nine months to December 2022, NamPort handled a total of 820,243 metric tonnes of cargo, representing an 18% increase from the corresponding period in 2021. Fitch expects the ongoing ability to modify tariffs above inflation to be limited due to constraints on customer affordability and regional competitive concerns.
Namport’s National Long-Term Rating is equalised with the Namibian sovereign, and in comparison, with peers, Fitch assesses Namibia Power Corporation (Proprietary) Limited’s (NamPower; BB-/Stable) and Namibia Water Corporation’s (NamWater; BB-/Stable) SCPs at ‘bbb-‘, stronger than the Namibian sovereign.
However, the two companies’ Long-Term Issuer Default Ratings (IDR) are constrained by the Namibian sovereign rating, in accordance with Fitch’s GRE and Parent Subsidiary Linkage Rating Criteria
