ICRA assigned A1+ to the Rs 12 billion (enhanced from Rs 6.25 billion) commercial paper programme of Adani Ports and Special Economic Zone (APSEZL). ICRA also has ratings of AA- outstanding on the Rs 61.31 billion bank limits and the Rs 13 billion non convertible debenture programme of APSEZL, the outlook on which is 'Stable'. 

For the purpose of arriving at the rating, ICRA has used a limited consolidation approach, under which guarantees extended to group ventures, proposed equity investments in the subsidiaries/SPV projects and commitments on cost over-run funding of the subsidiaries/ SPV projects have been considered; debt of the subsidiaries/SPV projects which is project recourse in nature has not been factored in. 

The ratings continue to reflect the strong business profile of the company's flagship Mundra port which has emerged to become India's leading port in terms of total cargo handled (over 100 million tons in FY14) and has been consistently registering cargo growth at rates superior to the industry trend even in the midst of a challenging business and economic environment, driven by its favorable operating characteristics; diversified cargo profile and long term customer tie-ups. The ratings also factor in the robust profitability metrics and cash accruals of APSEZL and the upside potential to its cash flows from recently commissioned facilities at Mundra port. Further, being a non-major port entity, APSEZL enjoys flexibility in tariff determination as per the current regulatory regime.
 
ICRA notes that the company's credit metrics remained moderate in the recent past owing to the large scale of its domestic capex programme including expansion activities at Mundra port and investments in pan India port projects. APSEZL's indirect exposure by way of a corporate guarantee to the group's Australian business continues.

ICRA further notes that as per the management's stated intent, APSEZL's surplus cash flows would be utilized for its own investments and debt repayment. Should there be any material direct/indirect support to group companies, it would also be a rating sensitivity. 

Shares of the company gained Rs 19.4, or 9.47%, to settle at Rs 224.25. The total volume of shares traded was 2,976,196 at the BSE (Tuesday).