Moody’s Ratings Upgrades Adani Ports Outlook To Stable; Reaffirms Baa3 Rating

Moody’s Ratings on Thursday upgraded Adani Ports and Special Economic Zone (APSEZ) outlook from negative to stable.

The global rating agency also reaffirmed APSEZ’s ‘Baa3’ investment-grade rating, signalling confidence in the company’s financial strength and long-term creditworthiness.

The agency affirmed the Baa3 senior secured ratings of Adani Transmission Step-One Limited (ATSOL) and Adani Electricity Mumbai Limited (AEML).

It also maintained the ‘(P)Baa3 senior secured MTN programme’ rating for AEML, India’s leading integrated power utility company.

Moody’s noted that APSEZ will retain solid liquidity access and a credit profile consistent with its Baa3 rating over the next 12-18 months.

APSEZ strengthens its finances through flexible capital plans and secure funding.

“The stable outlook reflects our expectation that ATSOL and AEML will maintain liquidity access and credit metrics supportive of their investment-grade ratings over the next 12-18 months,” Moody’s explained.

The rating agency highlighted that ATSOL’s senior secured bonds benefit from its close credit link with parent company Adani Energy Solutions Limited (AESL).

AESL’s guarantee on the bonds and default provisions tied to its insolvency strengthens ATSOL’s credit profile.

AESL maintains a diversified portfolio of high-quality transmission and distribution assets. Its operations benefit from stable regulatory support and long-term contracts with fixed tariffs.

Moody’s expects AESL’s funds from operations (FFO) to net debt ratio to stay slightly above 7.5% over the next one to two years, considering planned capital expenditures.

Moody’s also reaffirmed AEML’s senior secured bond ratings, citing predictable revenues from its regulated utility operations in Mumbai.

The agency projects that AEML will generate cash flow from operations (CFO) before working capital/debt of 10.5-11.5% during the same period.

Moody’s trusts Adani Group to maintain liquidity, financial stability, and investment-grade ratings while managing capital projects.