Fitch Ratings revises outlook for Adani Ports & Adani Energy
Fitch Ratings has revised the Outlook on Adani Ports and Special Economic Zone Limited’s (APSEZ) Long-Term Foreign-Currency Issuer Default Rating (IDR) and unsecured note rating to Stable, from Negative, and has affirmed the ratings at ‘BBB-‘. The rating agency also revised Adani Energy Solutions Limited’s (AESL) outlook to Stable from Negative and affirmed its Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB-‘.
“We expect liquidity and funding to remain commensurate with APSEZ’s ratings, with financial flexibility supported by its cash flows, which are driven by a robust portfolio of seaports, a degree of capex flexibility and demonstrated credit market access. While the timing and eventual outcome of the US investigation and its impact on Adani group is uncertain, we expect risks to be manageable for APSEZ in the near term,” Fitch stated in its commentary on Monday.
“We assess the financial profile to be stronger than is commensurate with APSEZ’s ‘BBB-‘ rating, which is constrained by India’s (BBB-/Stable) Country Ceiling of ‘BBB-‘,” it added. It also pointed out that APSEZ charges higher tariffs than other Indian ports and these tariffs are justified by its better operational efficiency and hinterland connectivity, which lowers shippers’ overall logistics costs, according to management.
Fitch noted that APSEZ’s medium-term capex plan was well developed, with a focus on expanding capacity at key ports to accommodate demand growth, as most major greenfield projects are nearing completion. The plan also includes upgrading ports and enhancing logistics capabilities, such as warehousing, bulk rakes and trucking, with budgeted annual capex of about ₹120 billion-160 billion over the medium term.
While revising the outlook for AESL, Fitch also affirmed the ‘BBB-‘ ratings on Adani Electricity Mumbai Limited’s (AEML) senior secured notes and the AESL-guaranteed senior secured notes issued by AESL’s subsidiary, Adani Transmission Step-One Limited. “The Outlook revision reflects Fitch’s view that contagion risks associated with AESL and AEML have eased. The Adani group has demonstrated access to diversified funding sources, despite a US indictment related to certain board members of a group entity, Adani Green Energy Limited (AGEL), on 20 November 2024. Moreover, the group has continued to invest in projects with capex picking up in the first half of the financial year ending March 2026 (FY26),” it added.
The rating agency also stated that AEML’s additional funding requirements are low, as cash flow from operations is sufficient to fund most of its capex. The Adani group has not tapped US dollar public bonds, but its funding access and financing cost have been supported by liquidity in the domestic loan and bond market as well as US dollar funds raised from private placements.
Published on November 4, 2025
