Adani Ports & SEZ Rating: APSEZ Earns Coveted AAA Rating from Care

APSEZ's AAA rating is a milestone in India's private infrastructure, making it the first of its scale to achieve this recognition. Despite Adani Energy Solution's AAA ratings, APSEZ is the inaugural company-level recipient.

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Adani Ports & SEZ (APSEZ) Achieves AAA Rating, Cementing its Reliability in India's Infrastructure Sector

Adani Ports & SEZ (APSEZ), a stalwart within the Adani Group and a leading contributor to its profits, has achieved a significant milestone by securing a AAA rating from Care Ratings, one of India's premier credit-rating agencies. This prestigious rating symbolises the highest level of creditworthiness and underscores APSEZ's robust capacity to repay investors, marking it as a beacon of reliability within the private infrastructure sector.

APSEZ: Pioneering the Path with AAA Rating in India's Private Infrastructure Development

The AAA rating bestowed upon APSEZ holds paramount importance as it distinguishes the company as the first private infrastructure developer of its stature to receive such recognition. This landmark achievement not only solidifies APSEZ's standing but also sets a benchmark for excellence within India's private infrastructure landscape. Moreover, this recognition extends beyond APSEZ alone, as two transmission assets of Adani Energy Solutions—WTGL (West Transmission Gujarat Limited) and Alipurdwar—have also garnered AAA ratings from India Ratings, further underscoring the Adani Group's commitment to excellence and financial prudence.

Robust Business Model Propels APSEZ to AAA Rating Recognition

The elevated rating is a testament to APSEZ's resilient business model, characterised by robust operational growth and healthy profitability metrics, bolstered by substantial liquidity and minimal leverage. According to the CARE report, the ratings are underpinned by APSEZ's remarkable expansion in operational scale, steady PBILDT margins (Profit before Interest, Lease, Depreciation, and Taxation), and demonstrated execution prowess in the port sector, all of which contribute to its enviable credit profile.

APSEZ's Prudent Debt Management Strategy Reflects in Improved Leverage

Over the years, APSEZ has exhibited a commendable trajectory of improving leverage, as evidenced by the steady decline in its net external debt to PBILDT ratio from 3.62 times as of March 31, 2021, to 2.41 times as of December 31, 2023. This progress was further bolstered by the strategic buyback of USD 650 million bonds, with approximately USD 325 million repaid by December 2023, showcasing APSEZ's commitment to prudent debt management and financial discipline.

APSEZ's Integrated Business Model Drives Maritime Sector Growth

The CARE report also underscores APSEZ's exceptional track record in revitalising port assets post-acquisition, alongside its integrated business model encompassing ports and logistics assets. This integrated approach has not only fuelled APSEZ's growth but has also contributed significantly to India's maritime sector, with APSEZ's ports witnessing a compounded annual growth rate (CAGR) of 15% from FY19 to FY24, outpacing the industry average of 4% CAGR for all Indian ports.

From Two Ports to Fourteen: APSEZ's Remarkable Journey Reshaping India's Maritime Landscape

From its humble beginnings of operating just two ports—Mundra and Dahej—in 2011, APSEZ has transformed into a powerhouse, managing a portfolio of 14 ports strategically positioned along India's vast coastline. This evolution has been propelled by factors such as enhanced reach, strategic port locations, operational efficiencies, and a comprehensive suite of integrated services, including Special Economic Zones (SEZs) and logistics solutions. With a commanding 27% volume market share, APSEZ's ports serve as the primary gateway to India's burgeoning trade and economic prosperity.

APSEZ: Key Gateway to India's Trade and Economic Prosperity

APSEZ's attainment of a AAA rating from Care Ratings not only validates its financial robustness but also underscores its pivotal role in driving India's infrastructure growth story. As APSEZ continues to expand its footprint and reinforce its commitment to excellence, it stands poised to spearhead India's infrastructure development journey, setting new benchmarks of excellence and reliability along the way.

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