S&P Upgrades Adani Ports to 'BBB', Matching India's Sovereign Rating

S&P Global Ratings has upgraded Adani Ports and Special Economic Zone Limited (APSEZ) to 'BBB' from 'BBB-', with a 'Stable' outlook, aligning the company's credit rating with India's sovereign rating for the first time. The upgrade, announced on Thursday, reflects the company's strong cash generation and its ability to fund an ambitious expansion while maintaining healthy leverage.

Ashwani Gupta, Whole-time Director and CEO of APSEZ, described the upgrade as a landmark achievement, stating that it reflects the strength of the company's business model, resilience of cash flows, quality of infrastructure assets, and commitment to financial discipline.

The rating agency noted that Adani Ports' robust financials can accommodate high growth spending, its tightened leverage policy supports healthy financials, and its growing and diversified portfolio of assets underpins strong cash flows. S&P expects annual capital expenditure to rise to about ₹18,000 crore in fiscal 2027 and 2028 and ₹20,000 crore in fiscal 2029, up from historical levels of around ₹13,000 crore.

The upgrade comes amid Adani Ports' ambitious growth plan to increase domestic port capacity to 1 billion tonnes by 2030 from 653 million tonnes currently. The company's strong financial position provides significant headroom to support this strategy, according to S&P.

In January 2026, Japanese Credit Rating Agency (JCR) had assigned APSEZ an 'A-/Stable' rating, a rare instance of an Indian corporate exceeding the sovereign threshold set by an international rating agency.

The upgrade underscores Adani Ports' resilient business model, which has withstood trade tensions and competitive pressures, and its disciplined approach to capital allocation.