Adani Group Got another good news. In fact, Adani Ports and Special Economic Zone Limited (APSEZ), one of the highest profit making companies for Adani Group, has been upgraded to AAA rating by Care Ratings. This is the highest possible rating given to someone by credit-rating agencies in India. It indicates the strongest level of creditworthiness and ability to repay investors. This achievement also holds great significance for India’s private infrastructure sector. APSEZ is the only company in the private sector to receive this rating.
APSEZ has grown from operating just two ports (Mundra and Dahej) in 2011 to a portfolio of 14 ports spread across India’s coastline. Improved accessibility, strategic ports, operational efficiencies and a wide range of integrated service offerings including SEZs and logistics have contributed to the company’s remarkable growth.
These companies also got AAA rating
Notably, Adani Energy Solution’s WTGL (West Transmission Gujarat Limited) and Alipurduar have also been rated AAA by India Ratings. However, at the company level, APSEZ stands first. The rating has been upgraded based on APSEZ’s strong business model, strong growth in profitable operations and high liquidity. With 27 per cent market share, APSEZ ports are major gateways to India’s trade and economic growth story.
Company’s ability to repay debt strengthened
The CARE report said the ratings are strengthened by good growth in scale of operations, stable PBILDT (profit before interest, lease, depreciation and taxation) margins, APSEZ’s performing capabilities in the port sector and strong liquidity. APSEZ’s leverage, denoted by Net External Debt/PBILDT (profit before interest, lease, depreciation and tax), increased from 3.62x as of March 31, 2021, to 3.14x as of March 31, 2023. Subsequently, the $650 million bond (July With the buyback of (due in 2024), APSEZ plans to repay approximately $325 million by December 2023. Due to this, Net External Debt/PBILDT increased to 2.41 times by December 31, 2023.
Input: IANS
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