Our credit view of this issuer reflects its high barriers to entry and strong cash flow generation of infrastructure business, constrained by its high leverage.
The expected reduction in reported leverage will be mainly driven by DP World continuing to consolidate the assets fully while benefitting from a reduction in consolidated debt.
DPW’s acquisitions broaden its logistics service offering, but is initially credit negative because it deviates from the company's commitment to reduce net leverage toward 4x by 2022.