Tanger Med Port Authority Receives First-Ever Investment-Grade Ratings

Rabat – Tanger Med Port Authority (TMPA) has received its first long-term investment-grade credit ratings from both S&P Global Ratings and Moody’s Ratings, with each agency assigning a stable outlook while pointing to the port’s strong market position and major expansion plans.

S&P Global Ratings assigned TMPA a long-term issuer credit rating of BBB- with a stable outlook. Moody’s Ratings assigned the company a Baa3 long-term issuer rating, also with a stable outlook.

The two ratings come as Tanger Med continues to strengthen its position as Africa’s largest container port and the biggest import-export hub in Morocco. In 2025, the port handled 11.1 million twenty-foot equivalent units (TEUs), while generating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of MAD 3.3 billion, according to S&P.

Moody’s reported revenue of MAD 4.43 billion and adjusted EBITDA of MAD 3.25 billion for the same year.

S&P said TMPA benefits from its location on the Strait of Gibraltar, connecting more than 180 ports worldwide. The agency said the port has become a key hub for major shipping companies thanks to its operational efficiency, automated terminals, competitive pricing, and its role as one of Maersk’s seven global hub terminals.

The agency also pointed to the port’s inclusion in the Gemini Cooperation launched by Maersk and Hapag-Lloyd in 2025. Under the partnership, Tanger Med serves as one of 15 global hub ports supporting major trade routes between Asia, the United States, the Middle East, and Europe.

Expansion plans drive higher borrowing

Both agencies expect TMPA to increase borrowing over the next few years as it expands its infrastructure.

S&P said the port authority plans about €1.1 billion (MAD 11.76 billion) in capital spending between 2026 and 2028 to expand container capacity and support rising traffic.

It expects funds from operations to debt to decline from 34% in 2025 to around 16% by 2028 before improving once the investment cycle ends.

The agency also expects negative free operating cash flow during the expansion period, turning positive from 2029.

Moody’s also expects negative free cash flow until 2029 because of ongoing expansion projects, including the Roll-on Roll-off terminal and additional infrastructure. However, it said TMPA should maintain funds from operations to debt above 14%, which supports its Baa3 rating.

Both agencies cited the company’s long-term concession model as a key strength. Much of TMPA’s revenue comes from long-term agreements with shipping operators, with minimum traffic commitments that provide stable income even during periods of weaker volumes.

S&P said its rating is capped at Morocco’s sovereign rating because it considers TMPA a government-related entity with a very high likelihood of receiving state support if needed.

While Moody’s also classified TMPA as government-related, the agency rated it one notch above Morocco’s sovereign rating, saying the port’s business is largely driven by international transshipment activity, generates substantial foreign currency revenue, and faces limited government interference.

Both agencies said the stable outlook reflects expectations that TMPA will maintain solid financial performance while carrying out its expansion plans.