ICRA upgrades rating outlook of APSEZ to stable

ICRA today said it has upgraded rating outlook of Adani Ports and Special Economic Zone (APSEZ) from 'negative' to 'stable' and reaffirmed long term rating at AA+.
"ICRA has reaffirmed long term rating on Rs 10,020 crore bank facilities and Rs 5,334 crore (reduced from Rs 6,884 crore) Non-Convertible Debenture Programme of Adani Ports and Special Economic Zone Limited at ICRA AA+ (pronounced ICRA double A plus). The outlook on the long term rating has been revised to 'stable' from 'negative'," it said in a statement.
The revision in outlook reflects anticipated strengthening of credit metrics on account of significant reduction in advances to related/unrelated parties as well as healthy growth in overall cargo volumes supported by container and liquid cargo volumes, which now form over 60 per cent of the total cargo throughput.

The revision in outlook further takes into account the bond covenants restricting the company from entering into any related party transactions other than those undertaken for permitted business and as undertaken in ordinary course of business as well as the management's stated intent of winding down remaining related party loans & advances partly by March 2017 and entirely by December 2017.
The rating agency further said that it has withdrawn the AA+ rating assigned to the Rs 1,550 crore Non-Convertible Debenture Programme of APSEZ.
"ICRA has also reaffirmed the short term rating of ICR AA1+ (pronounced as ICRA A one plus) on the Rs 6,700 crore Commercial Paper programme/short term debt programme of APSEZL," it said.