Crisil names Adani Ports & SEZ as non-cooperative issuer

Company failed to provide information for rating process

Rating agency Crisil has named Adani Port and Special Economic Zone Limited (APSEZ) as non-cooperative issuer. Adani group unit failed to provide information for rating action despite repeated attempts to garner data.

Crisil reaffirmed “AA-” rating for long-term loans. The rating action was based on the best-available information. 

The ratings continue to reflect the company's dominant market position, healthy operational profitability, and robust financial flexibility. These strengths are partially offset by its leveraged capital structure because of sizable debt-funded capital expenditure, and exposure to promoter companies.

Rating on the company's short-term facility has been removed from 'Notice of Withdrawal'. The non-fund-based facility has been placed on 'Notice of Withdrawal' for 90 days, in line with Crisil's revised withdrawal policy.

The rating agency said it has been consistently following up with the company for information through letters and emails, apart from telephonic communication. It had, through a letter (dated February 28, 2017),  informed the company of the extant guidelines and requested for cooperation. However, the issuer has continued to be non-cooperative, Crisil said in a statement.

On December 23, 2016, the outlook was revised to 'Stable' from 'Negative'. Crisil then said that APSEZ's financial risk profile would continue to improve, led by expected higher cash accrual from subsidiary ports and reduction in related-party loans, over the medium term.

The company has 10 ports across India, of which, 8 were operational as on September 30, 2016. Most of the ports (apart from the Mundra port) have become operational in the past three years and accounted for around 30% of the consolidated revenue in fiscal 2016.