ICRA has assigned long term rating of AA- to the Rs 1,000 crore proposed Non Convertible Debenture (NCD) programme of Adani Ports and Special Economic Zone (APSEZL). The outlook on the long term rating is Negative. The NCDs are proposed to be used by the company for refinancing maturing debt and meeting capex and general corporate requirements.

The credit rating agency also has ratings of 'AA-' outstanding on the Rs 4829.96 crore bank limits and the Rs 300 crore (reduced from Rs 1575 crore) Non Convertible Debenture programme of APSEZL, the outlook on which stands revised to Negative from Stable earlier. Meanwhile, the credit rating agency continues to maintain its 'A1+' rating on the Rs 625 crore Commercial Paper programme/short term debt programme of APSEZL.

The ratings continue to reflect the strong business profile of the company's flagship Mundra port which has enabled it to register cargo growth at rates superior to the industry trend even in the midst of challenging market conditions; the company's robust profitability metrics and cash accruals from operations; and the strong upside potential to its cash flows over the medium to longer term from the newly commissioned facilities at Mundra port and projects at SPV level.

Further being a non-major port entity, APSEZL enjoys flexibility of tariff determination for a large part of its port operations as per the current regulatory regime; any changes in that would be an event based rating sensitivity. The ratings are also supported by the fact that most of the company's projects have been/are being executed through SPVs, many of which have been completed and are funded on a project recourse basis.