Fitch Ratings has affirmed the Namibian Ports Authority’s (NamPort) National Long-Term Rating at ‘AA+(zaf)’ with a Stable Outlook, underscoring the port operator’s crucial role in Namibia’s logistics and trade infrastructure.
According to Fitch Ratings, Namibia’s ports in Walvis Bay and Lüderitz play a strategic role in regional trade, offering competitive services and essential connections to the Southern African Development Community (SADC) region and global markets.
The 2019 opening of the Walvis Bay container terminal has significantly eased capacity constraints and is expected to drive future growth in cargo volumes, despite prevailing economic uncertainties.
Fitch noted that NamPort’s financial performance has exceeded expectations, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the year ending March 2024 surging by 60.3% to over N$1 billion.
This robust growth resulted in a lower-than-anticipated net debt-to-EBITDA ratio of 1.4x, strengthening the entity’s financial position.
“NamPort group performed well above Fitch’s expectations in the financial year ending March 2024. Group EBITDA rose by 60.3% year-on-year to over N$1 billion, well above Fitch’s base case at the last annual review, resulting in lower-than-expected net debt/EBITDA of 1.4x as of March 2024,” Fitch stated in its report.
Fitch also highlighted that NamPort’s strong credit rating is bolstered by its close ties to the Namibian government, which fully owns the port authority and guarantees the servicing of its African Development Bank (AfDB) loan, covering more than 90% of its debt.
Fitch emphasized that this backing is instrumental in maintaining NamPort’s financial stability and high credit standing.
According to Fitch, NamPort’s revenue risk is categorized as ‘Midrange,’ citing the port operator’s ability to sustain growth through tariff adjustments and efficient operations. While no regulatory mechanism limits tariff hikes, NamPort has implemented below-inflation adjustments to maintain regional competitiveness.
Fitch pointed to NamPort’s infrastructure investments as a key strength, with the Walvis Bay container terminal boasting a capacity of 750,000 twenty-foot equivalent units. This modern facility, supported by government funding and guarantees, positions NamPort for long-term sustainability.
Ongoing upgrades, financed through internally generated funds and available credit facilities, further reinforce operational resilience.
NamPort’s debt structure was also assessed by Fitch as ‘Midrange,’ with fully amortising senior unsecured debts that are exposed to floating interest rates but benefit from strong covenants and liquidity reserves.
While NamPort maintains a stable financial outlook, Fitch cautioned that any downgrade in Namibia’s sovereign rating could negatively impact its credit standing. Conversely, an upgrade in the country’s rating could enhance NamPort’s position in the financial markets.
