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Adani Ports and Special Economic Zone (APSEZ) owns and operates eight ports and terminals in India.
Adani Ports and Special Economic Zone (APSEZ) owns and operates eight ports and terminals in India.

ICRA places Adani Ports AA+ rating under watch with negative implications

  • ICRA said if the acquisition was successfully completed, it will result in a gross debt addition of 6,200 crore
  • The rating action follows Adani Ports' proposed acquisition of a 75% stake in Krishnapatnam Port Co Ltd for 13,500 crore

MUMBAI : Rating agency Icra has placed the long-term ratings of Adani Ports and Special Economic Zone Ltd on watch with negative implications. The rating action follows Adani Ports' proposed acquisition of a 75% stake in Krishnapatnam Port Co Ltd for 13,500 crore, including 6,200 crore in debt.

The company has said the acquisition will be funded via internal accruals and existing cash balance.

ICRA said if the acquisition was successfully completed, it will result in a gross debt addition of 6,200 crore and cash outflow of 5,500 crore for Adani Ports at a consolidated level.

"Effectively, KPCL’s acquisition, along with other acquisitions and capex done in the recent past, could result in an increase in the company’s net leverage (net debt/OPBDITA) in FY2021 and will push back the anticipated trajectory of improvement in the leveraging levels," Icra report added.

Earlier, two international rating firms Fitch and Moody's Investors Service had said there would be no rating impact if Adani Port acquires a majority stake in the Krishnapatnam Port.

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