Adani Ports Receives Top Credit Ratings on Over Rs 339 Billion Debt

India Ratings and Research Pvt. Ltd. has affirmed and assigned credit ratings for Adani Ports and Special Economic Zone Limited's (APSEZ) various debt instruments.

Rating Details

The agency affirmed ratings for existing Non-Convertible Debentures (NCDs) totaling Rs 108.52 billion and Commercial Paper worth Rs 67 billion at 'IND AAA/Stable' and 'IND A1+' respectively. New debt facilities, including proposed NCDs of Rs 64 billion and Bank Loan Facilities of Rs 90.20 billion, were assigned 'IND AAA/Stable'. An additional debt facility of Rs 10 billion was affirmed at 'IND A1+'. These ratings reflect APSEZ's robust financial profile and strong debt management capabilities, signaling confidence from the rating agency.

Significance for APSEZ

Top-tier credit ratings are vital for a company's ability to access capital markets at competitive rates. For APSEZ, these affirmations and assignments suggest continued lender confidence, which is crucial for funding its extensive expansion plans and ongoing operations. It reinforces the company's position as a stable borrower, potentially lowering its cost of borrowing and enhancing its financial flexibility for future strategic initiatives.

APSEZ's Credit Track Record

Adani Ports, India's largest private port operator, has a history of active debt management. In October 2024, India Ratings had already upgraded APSEZ's Long-Term Issuer Rating to 'IND AAA'. More recently, in August 2025, S&P Global Ratings revised APSEZ's outlook to positive from negative, affirming its 'BBB-' rating. The company has consistently accessed debt markets, issuing significant NCDs like the Rs 5,000 crore 15-year NCD in May 2025 and Rs 1,000 crore in February 2026. APSEZ has also engaged in bond buybacks to optimize its offshore debt profile. These actions, coupled with a decreasing Net Debt to EBITDA ratio, highlight the company's strategic focus on financial health.

Benefits of Top Ratings

• Lower Borrowing Costs: The 'IND AAA' rating typically allows companies to borrow at more favourable interest rates.
• Enhanced Investor Confidence: The highest rating from a reputable agency reinforces investor trust in APSEZ's financial stability.
• Support for Expansion: Easier access to funds at competitive rates will support APSEZ's ambitious growth and acquisition strategies.
• Refined Debt Profile: The rated instruments contribute to APSEZ's overall debt maturity profile and capital structure management.

Remaining Risks

While the credit ratings are strong, APSEZ operates in a dynamic environment. Past allegations of sanctions evasion and ongoing regulatory investigations, though not materially impacting funding access according to S&P, remain areas of scrutiny. The company has also implemented policies like banning sanctioned vessels from its ports, indicating a response to global compliance pressures.

Competitive Position

APSEZ is India's largest private port operator, commanding a significant market share. Its closest domestic competitor is JSW Infrastructure, which also has substantial capacity and captive cargo. Global players like DP World operate in India's container terminal segment, presenting competitive pressures. However, APSEZ's extensive network and integrated logistics services, bolstered by top-tier credit ratings, position it favourably against peers.

Key Financial Metrics

• The total value of debt instruments rated by India Ratings as of April 1, 2026, amounts to Rs 339.72 billion.
• Of this, Rs 262.72 billion in debt instruments have been affirmed or assigned the highest 'IND AAA/Stable' rating.
• APSEZ’s Debt to Equity ratio stood at 81.6% in FY25, having reduced from higher levels over the past five years.

What to Monitor Next

• Future Debt Issuances: Monitor upcoming debt issuances and their pricing to gauge the market's response to these ratings.
• Operational Performance: Track cargo volumes, revenue growth, and profitability, which underpin the financial strength reflected in the ratings.
• Expansion Progress: Observe the execution of APSEZ's ongoing port expansions and acquisitions, and their funding structure.
• Interest Coverage Ratios: Keep an eye on APSEZ's ability to service its debt, as indicated by interest coverage metrics.
• Global Economic Factors: Assess how global trade dynamics and geopolitical events might influence cargo volumes and port operations.