No adverse impact on Adani Port credit profile post KPCL
Kolkata, Jan 14 (PTI) Adani Ports and Special Economic
Zone Ltd's proposed acquisition of 75 per cent equity stake in
Krishnapatnam Port Company Ltd would not have any adverse
impact on its credit profile, India Rating (Ind-Ra) has said.
Krishnapatnam Port Company is a key player in the
eastern coast with a total capacity of 64 million metric
tonnes per annum.
APSEZ would incur a cash outflow of about Rs 55
billion towards the acquisition, and add debts worth Rs 62
billion of the Krishnapatnam Port.
"Even after assuming absolute EBITDA remaining same at
FY19 levels, pro-forma consolidated net leverage (net
debt/EBITDA) of Adani Ports in the current fiscal and first
half of FY21 is unlikely to increase beyond Ind-Ra's negative
trigger," the rating agency said in a note.
Post the acquisition, Andani Port's market share of
pan-India cargo volume would increase to 27 per cent from 22
per cent, it said. PTI BSM