The recent purchase by Adani Ports and Special Economic Zone (APSEZ) of a stake in Krishnapatnam Port Company Ltd. (KPCL) is expected to increase APSEZ's market share and its diversity, both geographically and in its cargo composition, according to a new report published by credit rating agency Moody's Investors Service.
Moody's notes that APSEZ's leverage — as measured by funds from operations/debt — should remain above 15–18 percent after the acquisition; a result which would be within the parameters of the company's Baa3 ratings level.
“While APSEZ's outstanding consolidated debt will significantly increase by 18–20 percent as a result of the acquisition, the refinancing risk is manageable because of the cash flow visibility from the group's assets, staggered nature of the debt maturities and diversified funding sources,” said Abhishek Tyagi, a vice president and senior analyst at Moody’s. “In addition, the slightly weaker metrics post acquisition wi
