S&P Global Ratings has upgraded its ratings for Adani Ports and Special Economic Zone's (NSE:ADANIPORTS, BOM:532921) long-term issuer credit rating and the issue rating on its senior unsecured notes to BBB from BBB-, with a stable outlook.
The ratings agency said the upgrade was driven by the company's "strong operating cash flow and financials," which give it a greater cushion to accommodate large growth plans, according to a Thursday filing with the Indian stock exchanges.
The stable outlook reflects the expectation that the company will sustain strong operating performance over the next 12-24 months and keep its net debt-to-EBITDA ratio at around 2.6 times despite elevated capital spending, S&P said.
Adani, in its statement, said the upgrade elevates it to a rating level at par with India's sovereign rating assigned by S&P.