Gopalpur Port: Riding the Adani Wave to New Heights

Care Ratings has upgraded Gopalpur Port's rating significantly following its acquisition by Adani Ports. The change reflects strong parentage, improved financial health, and operational efficiency. Despite certain risks, the port benefits from a strategic location and a strong liquidity profile, positioning it favorably in the industry.

In a significant development, Care Ratings has upgraded the ratings of Gopalpur Port by six notches, taking it from BBB (Rating Watch Positive) to AA/Stable. This comes in the wake of its acquisition by Adani Ports and SEZ, which took place in March.

The rating agency noted in a statement that the port, now operated by Adani Ports and Special Economic Zone Ltd (APSEZ), has benefited from the infusion of funds by the new owners, resulting in a prepayment of 64 percent of external debt. This improvement in financial health was a key reason for the rating upgrade.

APSEZ's impressive track record in managing port operations, along with the strategic location of Gopalpur Port and its strong liquidity profile, are expected to play a crucial role in overcoming challenges such as cargo concentration risks and adverse weather conditions.

(With inputs from agencies.)