S&P Global Ratings Affirms ‘BBB-‘ Issue Rating for Adani International Container Terminal
Adani International Container Terminal Pte Ltd (AICTPL) has received affirmation of its ‘BBB-‘ issue rating from S&P Global Ratings, with a stable outlook. The joint venture between Adani Ports and Special Economic Zone Ltd and Terminal Investment Ltd operates as a container terminal in Mundra, Gujarat. Its strategic location offers favorable water depth and extensive rail and road connectivity to India’s industrial hinterland.
S&P Global Ratings stated that the stable outlook reflects AICTPL’s ability to maintain predictable cash flow through market-based pricing and volume over the next 12-24 months. This affirmation is in line with the revised criteria for project finance transactions, indicating that the project’s creditworthiness is not impacted.
Regarded as ‘investment-grade’ by regulators and market participants, issuers and debt issues that receive a rating of ‘BBB-‘ or higher benefit from S&P Global Ratings’ assessments. However, an upgrade for AICTPL is unlikely over the next 12-24 months, as the sovereign rating on India constrains its rating, according to S&P. Additionally, the overall financial metrics are constrained by a large balloon payment, which is not expected to improve its standalone credit profile (SACP).
Overall, AICTPL’s affirmation of its issue rating reinforces its position as a reliable container terminal operator with sustainable cash flow projections. Its strategic location and extensive connectivity offer a competitive advantage in India’s growing logistics market.
About Adani Group:
Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. It was founded by Gautam Adani in 1988 as a commodity trading business, with the flagship company Adani Enterprises.
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