Fitch Ratings has upgraded the Namibian Port Authority’s (NamPort) National Long-Term rating to AA- from A+ and National Short-Term rating to F1+ from F1.

The outlook is stable.

Fitch says the upgrade and alignment of the rating with Namibian sovereign reflects the strengthening of links between NamPort and its sole shareholder. This it says, is demonstrated by the increasing amount of government guarantees for NamPort’s debt and direct equity contributions and despite increasing debt leading to worsening expected credit metrics.

Under Fitch’s parent and subsidiary rating linkage methodology, NamPort has strong legal, operational and strategic links with the state of Namibia, including direct government guarantees for the Africa Development Bank loan (AfDB).

In Fitch’s view, the ties between NamPort and its sole shareholder are likely to remain strong in the foreseeable future. NamPort remains a strategic asset for the Namibian economy, operating the country’s two ports at Walvis Bay and Lüderitz, especially considering the ongoing port expansion project of NAD3.9bn, which is on schedule to be completed in the first quarter of 2017.