S&P affirms BBB- issue rating on Adani International Container

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Adani International Container Terminal Pte Ltd (AICTPL) is a 50-50 joint venture between Adani Ports and Special Economic Zone Ltd and Terminal Investment Ltd (TIL).

Adani group newsAICTPL works as a container terminal operator based in Mundra, Gujarat. (File image)

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S&P Global Ratings has affirmed ‘BBB-‘ issue rating on Adani International Container Terminal Pte Ltd (AICTPL ) and said the outlook is stable.

The stable outlook reflects that AICTPL will maintain predictable cash flow with fully market-based pricing and volume over the next 12-24 months.

AICTPL is a 50-50 joint venture between Adani Ports and Special Economic Zone Ltd and Terminal Investment Ltd (TIL). It works as a container terminal operator based in Mundra, Gujarat.

It is at a prime location with favourable water depth compared with other nearby ports, besides broad rail and road connectivity to India’s industrial hinterland.

“We affirmed our issue rating on AICTPL because we believe our revised criteria for project finance transactions does not impact our assessment of the project’s creditworthiness,” S&P Global Ratings said in a statement.

Issuers and debt issues that receive a rating of ‘BBB-‘ or above are generally considered by regulators and market participants to be ‘investment-grade’, according to S&P Global Ratings.

S&P further said that it believes an upgrade is unlikely over the next 12-24 months, because the rating on AICTPL is constrained by its sovereign rating on India.

“In addition, we do not expect the SACP (standalone credit profile) to improve, given the overall financial metrics are constrained by the large balloon payment,” it said.

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