By Ratnam Raju Nakka

India Ratings and Research (Ind-Ra) has affirmed Adani CMA Mundra Terminal Private Limited’s (ACMTPL) bank facilities rating as follows

Instrument Type

Date of Issuance

Coupon Rate (%)

Maturity Date

Size of Issue (million)

Rating/Outlook

Rating Action

Letter of credit*

-

-

May 2018

INR4,480

(USD61.9)

IND AA+(SO)/Stable

Affirmed

Sub-limit letter of undertaking

-

-

May 2018

INR4,480

(USD61.9)

IND AA+(SO)/Stable

Affirmed

* USD60.99 million outstanding as on 9 November 2017
 

KEY RATING DRIVERS

The rating is driven by the unconditional and irrevocable corporate guarantee extended by Adani Ports and Special Economic Zone Ltd (APSEZL; ‘IND AA+’/Stable) for the rated bank facilities.


RATING SENSITIVITIES

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


COMPANY PROFILE

ACMTPL is a special purpose vehicle, created to operate and maintain container terminal (CT-4) at the Mundra port. It is a 50:50 joint venture company between APSEZL 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 beginning February 2001. ACMTPL will have a right under the sub-concession agreement to operate and maintain CT-4. The project has already been constructed; hence, there is no completion risk.

ACMTPL commenced commercial operations on 15 May 2017. The project has two berths to handle 1.5 million twenty-foot equivalent units of the container volumes of CMA CGM and its affiliates. Excess capacity shall be used to handle third-party container volumes.


FINANCIAL SUMMARY

Particulars

FY17

FY16

Revenue from operations (INR million)

-

-

Total income (INR million)

65.28

25.28

PAT (INR million)

-188.42

15.39

Source: Company

 

 


RATING HISTORY

Instrument Type

Current Rating/Outlook

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

28 October 2016

Letter of credit

Long-term

INR4,480

IND AA+(SO)/Stable

IND AA+(SO)/Stable

Sub-limit letter of undertaking

Long-term

INR4,480

IND AA+(SO)/Stable

IND AA+(SO)/Stable


COMPLEXITY LEVEL OF INSTRUMENTS

For details on complexity level of the instruments please visit www.indiaratings.co.in/complexity-indicators

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.

ABOUT INDIA RATINGS AND RESEARCH

India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies, structured finance and project finance companies. 

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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

    Media Relation

    Abhijit Roy

    Head - Corporate Communications
    +91 22 40001781