By Ratnam Raju Nakka

India Ratings and Research (Ind-Ra) has assigned Adani CMA Mundra Terminal Private Limited’s (ACMTPL) USD61.9m (outstanding: USD61.3m on 30 September 2016) letter of credit and USD61.9m sub-limit letter of undertaking an ‘IND AA+(SO)’ rating. The Outlook is Stable.

PROJECT PROFILE

ACMTPL is a special purpose vehicle, created to operate and maintain container terminal (CT-4) at the Mundra port. The company is a 50:50 joint venture between Adani Ports and Special Economic Zone Ltd (APSEZL, ‘IND AA+’/Stable) and CMA Terminals Societe Par Actions Simplifiee, France (CMAT). CMAT is a dedicated subsidiary of the world’s third-largest container shipping group CMA CGM which is headquartered in Marseilles, France. APSEZL is the concessionaire for developing the Mundra port with a concession period of 30 years from February 2001. ACMTPL will have the right under the sub-concession agreement to operate and maintain CT-4, with the concession period ending February 2031. The project has already been constructed; hence, there is no completion risk. Trial runs for the project are underway and the assets would be transferred to ACMTPL by December 2016. 

ACMTPL expects to commence commercial operations by December 2016. The project has two berths to handle 1.5 million TEUs of the container volumes of CMA CGM and its affiliates. Excess capacity shall be used to handle third-party container volumes. 

KEY RATING DRIVERS

The rating is driven by the unconditional and irrevocable guarantee extended by APSEZL for the rated bank facility.
 


RATING SENSITIVITIES

A negative rating action could result from APSEZL’s rating downgrade.



SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 


Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer. 



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Analyst Names

  • Primary Analyst

    Ratnam Raju Nakka

    Associate Director
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th floor, West Wing Plot C-2, G Block. Bandra Kurla Complex Bandra (East), Mumbai 400051
    +91 22 40001742

    Committee Chairperson

    Venkataraman Rajaraman

    Senior Director and Head Infrastructure and Project Finance
    +91 44 43401702

    Media Relation

    Mihir Mukherjee

    Manager Corporate Communications and Investor Relations
    +91 22 40356121