AD Ports Group (ADPORTS:ADX) announced that it has been awarded an initial A1 credit rating with a stable outlook from Moody’s Ratings. This rating highlights the Group’s impressive financial performance and promising growth potential.
Strong financial foundations and government support
The A1 long-term issuer rating assigned to AD Ports Group derives from its Baseline Credit Assessment (BCA) of Baa2, alongside the significant ownership from the Government of Abu Dhabi via ADQ.
Strategic importance of key assets
Moody’s rating reflects the strategic significance of AD Ports Group’s key assets, including Khalifa Port and KEZAD, which play a vital role in the economic diversification strategy of the emirate. The rating also acknowledges the Group’s expanding infrastructure assets, resilient business model, and commitment to sound financial practices.
Milestone achievement in credit ratings
Additionally, this marks the first occasion that AD Ports Group has received a credit rating from Moody’s. The Group has previously earned investment-grade ratings from other agencies such as Fitch and S&P Global.
Sustainable long-term growth
Martin Aarup, group chief financial officer of AD Ports Group, expressed satisfaction with the credit rating from Moody’s, viewing it as clear recognition of the Group’s steadfast commitment to financial discipline, operational excellence, and sustainable long-term growth. He also emphasized that AD Ports Group focuses on achieving profitable growth that yields strong returns for all stakeholders. Aarup noted that this rating not only enhances the Group’s market reputation but also positions it for ongoing success and improved access to capital.
Understanding the A1 rating
Furthermore, the A1 rating stands as the fifth-highest on Moody’s 21-notch global ratings scale, which ranges from Aaa to C. An A1 rating indicates upper-medium investment grade and signifies low credit risk.
Record financial performance in Q3 2024
Moreover, on November 12, AD Ports Group reported record revenue and profit figures for Q3 2024, reaching AED4.66 billion ($1.27 billion) and AED445 million ($121.15 million), respectively, fueled by robust growth across its core business sectors.
