ICRA has reaffirmed the long term rating on the Rs 100.20 billion bank facilities and Rs 53.34 billion (reduced from Rs 68.84 billion) Non Convertible Debenture Programme of Adani Ports and Special Economic Zone (APSEZL) at [ICRA]AA+ (pronounced ICRA double A plus). The outlook on the long term rating has been revised to 'Stable' from 'Negative'.
ICRA has withdrawn the [ICRA]AA+ rating assigned to the Rs 15.50 billion Non Convertible Debenture Programme of Adani Ports (Q,N,C,F)* and SEZ. ICRA has also reaffirmed the short term rating of [ICRA]A1+ (pronounced as ICRA A one plus) on the Rs 67 billion Commercial Paper programme/short term debt programme of APSEZL.
The revision in outlook reflects the anticipated strengthening of credit metrics on account of significant reduction in advances to related/unrelated parties as well as the healthy growth in overall cargo volumes supported by container and liquid cargo volumes which now form over 60% 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 the 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.
Shares of the company declined Rs 0.7, or 0.24%, to settle at Rs 296.75. The total volume of shares settled was 202,987 at the BSE (Monday).