S&P Global Ratings has upgraded the long-term issuer credit rating of Adani Ports and Special Economic Zone Limited (APSEZ) and the issue rating on its senior unsecured notes to 'BBB' from 'BBB-', with a 'Stable' outlook. This upgrade elevates APSEZ to a rating level at par with India's sovereign rating assigned by S&P.
Rating Upgrade Details
According to a release from APSEZ, the upgrade recognizes the company's robust operating cash flow and financials, underpinned by a resilient business model that has withstood trade tensions across business cycles and competitive pressures within the transportation sector. Key rating action rationale includes APSEZ's robust financials that can accommodate high growth spending, a tightened leverage policy to support healthy financials, and a growing and diversified portfolio of assets that underpin strong cash flows.
CEO's Statement
Ashwani Gupta, Whole-time Director and CEO of APSEZ, said, "This S&P upgrade is a landmark achievement for the company. Attaining a rating at par with India's sovereign rating reflects the strength of our business model, the resilience of our cash flows, the quality of our infrastructure assets, and our unwavering commitment to financial discipline." He added, "This upgrade comes at a time when APSEZ is executing one of the most ambitious growth programs in the global ports and logistics sector and is testament to APSEZ's disciplined approach to capital allocation."
Recent Ratings and Context
In January 2026, Japan Credit Rating Agency (JCR) assigned APSEZ an 'A- / Stable' rating, representing a rare breach of the sovereign threshold by an Indian corporate from an international rating agency. This latest upgrade from S&P further solidifies APSEZ's financial standing and growth trajectory.
Impact and Significance
APSEZ, India's largest and one of the world's fastest-growing integrated transport operators, now holds a credit rating equivalent to the Indian sovereign rating. This milestone is expected to enhance investor confidence and lower borrowing costs for the company, supporting its ambitious expansion plans in the global ports and logistics sector.
