CARE Rating Agency has assigned CARE AA [Double A] rating to Non
Convertible Debentures for the amount of Rs 495 crore of Adani Ports
& Special Economic Zone Ltd.
The rating assigned to the non convertible debentures of Adani Ports and Special Economic Zone Limited (APSEZ) factor in its strong operating efficiency and competitive position of its flagship port, Mundra, its superior infrastructure, flexibility in determining tariff being a non major port and diversified cargo mix, with long - term contracts with the customers. The rating also considers robust growth in the cargo volume handled by Mundra port making it the only commercial port in India to handle annual cargo more than 100 million metric tonne amidst the challenging macroeconomic environment, healthy growth in operating income, robust cash accruals and strong financial flexibility.
The rating also takes into account realization of substantial proceeds from the divestment initiated for the entities belonging to Abbot Point Coal Terminal (APCT) in Australia. The rating, however, is constrained by increase in debt levels of APSEZ over the last four years ending March 31, 2014 mainly on account of various growth plans of the company including capital expenditure incurred by it. The rating also takes cognizance of APSEZ's recent acquisition of Dhamra Port Company Ltd (DPCL, rate d ‘CARE A - /CARE A2+') funded with the mix of debt and equity.
Any large size debt raising plans of the company to fund capex or investment plans and extent of support to the group entities are the key rating sensitivities.
The rating assigned to the non convertible debentures of Adani Ports and Special Economic Zone Limited (APSEZ) factor in its strong operating efficiency and competitive position of its flagship port, Mundra, its superior infrastructure, flexibility in determining tariff being a non major port and diversified cargo mix, with long - term contracts with the customers. The rating also considers robust growth in the cargo volume handled by Mundra port making it the only commercial port in India to handle annual cargo more than 100 million metric tonne amidst the challenging macroeconomic environment, healthy growth in operating income, robust cash accruals and strong financial flexibility.
The rating also takes into account realization of substantial proceeds from the divestment initiated for the entities belonging to Abbot Point Coal Terminal (APCT) in Australia. The rating, however, is constrained by increase in debt levels of APSEZ over the last four years ending March 31, 2014 mainly on account of various growth plans of the company including capital expenditure incurred by it. The rating also takes cognizance of APSEZ's recent acquisition of Dhamra Port Company Ltd (DPCL, rate d ‘CARE A - /CARE A2+') funded with the mix of debt and equity.
Any large size debt raising plans of the company to fund capex or investment plans and extent of support to the group entities are the key rating sensitivities.
