Tanger Med Port Authority secures first investment grade credit ratings

Tanger Med Port Authority has obtained its first long-term investment grade credit ratings from S&P Global Ratings and Moody’s Ratings. Both agencies assigned stable outlooks, recognizing the port operator’s strong competitive position, resilient business model, and ambitious expansion strategy.

S&P Global Ratings assigned TMPA a long-term issuer credit rating of BBB- with a stable outlook, while Moody’s Ratings awarded a Baa3 long-term issuer rating, also with a stable outlook. The assessments reinforce the financial credibility of the operator as it continues expanding one of the world’s busiest transshipment hubs.

The investment grade ratings come as Tanger Med strengthens its position as Africa’s largest container port and Morocco’s leading import-export gateway. In 2025, the port handled 11.1 million twenty-foot equivalent units (TEUs). According to S&P, the operator generated EBITDA of MAD 3.3 billion, while Moody’s reported revenue of MAD 4.43 billion and adjusted EBITDA of MAD 3.25 billion during the same period.

S&P highlighted Tanger Med’s strategic location on the Strait of Gibraltar, providing direct connectivity to more than 180 ports worldwide. The agency credited the port’s operational efficiency, automated terminals, competitive pricing, and its role as one of Maersk’s seven global hub terminals for strengthening its market position.

The agency also emphasized the port’s participation in the Gemini Cooperation, launched by Maersk and Hapag-Lloyd in 2025. Under the alliance, Tanger Med serves as one of 15 global hub ports supporting key shipping routes linking Asia, Europe, the Middle East, and the United States.

Both rating agencies expect TMPA to increase borrowing over the coming years as it finances a new investment cycle aimed at expanding capacity and supporting future cargo growth.

S&P estimates that the port authority will invest approximately €1.1 billion (MAD 11.76 billion) between 2026 and 2028 to expand container handling capacity and related infrastructure. As a result, the agency expects the ratio of funds from operations to debt to decline from 34% in 2025 to around 16% by 2028, before recovering after the investment program is completed. Free operating cash flow is also expected to remain negative during the expansion phase before returning to positive territory from 2029.

Moody’s similarly forecasts negative free cash flow until 2029 due to ongoing infrastructure projects, including the development of a Roll-on Roll-off terminal and additional port facilities. Despite the higher borrowing requirements, the agency expects TMPA to maintain funds from operations to debt above 14%, supporting its investment grade profile.

Both agencies identified the port’s long-term concession model as one of its principal strengths. A significant share of revenue comes from long-term agreements with shipping operators that include minimum traffic commitments, providing stable and predictable cash flows even during periods of weaker market demand.

S&P noted that its rating remains aligned with Morocco’s sovereign rating because it considers TMPA a government-related entity with a very high probability of receiving state support if necessary.

Moody’s also classified the operator as government-related but assigned a rating one notch above Morocco’s sovereign rating. The agency cited the port’s international transshipment business, strong foreign currency earnings, and limited government intervention as factors supporting greater credit resilience.

Both agencies concluded that the stable outlook reflects expectations that Tanger Med Port Authority will preserve solid financial performance while successfully executing its large-scale expansion program.