ICRA Upgrades Rating On Adani Ports' Long-Term Bonds
The ratings consider the healthy profitability metrics and large cash accruals which enable the company to maintain a comfortable liquidity position.
Rating agency ICRA Ltd. upgraded ratings on select long-term bonds of Adani Ports and Special Economic Zone Ltd. on Thursday, citing its rising scale of operations in India that strengthens the company’s competitive position.
The rating on long-term fund-based/non-fund-based instruments worth Rs 10,020 crore and non-convertible debentures worth Rs 17,000 crore has been upgraded from 'AAA' to 'AA+' with a stable outlook. On the other hand, the agency reaffirmed the rating on short-term commercial papers worth Rs 6,700 crore at 'A1+'.
Adani Ports' strong business profile, marked by its favourable operating characteristics, geographical footprint, diversified cargo mix, long-term customer tie-ups and recent acquisitions, has also been noted.
The ratings also consider the healthy profitability metrics and large cash accruals, which enable the company to maintain a comfortable liquidity position.
The rating upgrade also factors in a significant improvement in APSEZL’s financial risk profile, led by its healthy business performance along with a moderation in financial leverage, ICRA said.
The net leverage improved to 2.49x in fiscal 2024 from 3.23x in the previous year. Going forward, ICRA said strong cash generation from operations is expected to keep the debt levels stable over this financial year to FY27, even as the company continues to execute a sizeable capex plan.
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