Fitch Upgrades Adani Ports & SEZ's Outlook To Stable And Retains 'BBB-' Rating

Fitch Ratings has upgraded the outlook on Adani Ports and Special Economic Zone Ltd.'s Long-Term Foreign-Currency Issuer Default Rating and unsecured note rating to 'Stable' from 'Negative' and affirmed the ratings at 'BBB-'.

The contagion risk associated with Adani Ports and Special Economic Zone is easing, as the Adani Group has demonstrated access to diversified funding sources, Fitch Ratings said in an article on its website. The group is able to access various funding sources despite the November 2024 US indictment relating to certain board members of Adani Green Energy Ltd.

The Securities Exchange Board of India ruled that in September that Adani Group did not violate regulatory disclosure norms or constitute market manipulation, as alleged in 2023 in Hindenburg report.

Adani Group continued to invest in projects with capital expenditure increasing the first half of the financial year ending in March 2026.

Fitch Ratings expect that liquidity and funding to remain in line with Adani Ports & Special Economic Zone's rating, with the ash flow supporting financial flexibility. A portfolio of seaports, a degree of capex flexibility and demonstrated credit market access are driving the cash flow.

The rating agency expects that the risks to remain manageable for Adani Ports & Special Economic Ltd. in the near term despite uncertainty about outcome of the US investigation and its timing of it remains.

The financial profile of Adani Ports and Special Economic Zone will likely be stronger than being commensurate with 'BBB-' rating. The rating is by India's (BBB-/Stable) Country Ceiling of 'BBB-', the rating agency said.

Geographically diversified port locations, advanced intermodal connectivity transportation infrastructure and best-in-class operational efficiency are benefitting Adani Ports & Special Economic Zone. It has high customer retention because of it is able to handle a variety of cargoes through a comprehensive and advanced infrastructure.