DP World has ample liquidity for next two years, says Exotix

Frontier market investment banking boutique Exotix has published credit research in which it says it expects Dubai container terminal operator DP World to have moderate growth in 2010 and has ample liquidity and manageable maturities for the next two years. Analysts believe that 2009 was the bottom in terms of both earnings and leverage.

Exotix sees DP World’s bond as one of the best proxies for Dubai sovereign, although analysts still prefer to hold Dubai sovereign 2014 notes over DP World’s 2017s, which pay 30bp more at z+615bp. Despite the fact that DP World derives around 40% of its revenue and has considerable assets outside the UAE, Exotix says its credit risk is significantly aligned to that of Dubai sovereign.