Fitch Revises Adani Ports and AESL’s Outlook to Stable and Affirms ‘BBB-‘ Rating

Fitch Ratings has revised the Outlook for Adani Ports and Special Economic Zone Limited (APSEZ) Long-Term Foreign-Currency Issuer Default Rating (IDR) and unsecured notes rating to Stable from Negative, and affirmed the ratings at ‘BBB-‘. The rating agency also revised the outlook of Adani Energy Solutions Limited (AESL) from negative to stable and affirmed its long-term foreign and local currency issuer ratings at ‘BBB-‘.

“We expect liquidity and financing to remain consistent with APSEZ’s ratings, with financial flexibility supported by cash flows driven by a robust portfolio of seaports, a degree of capex flexibility and proven credit market access. While the timing and ultimate outcome of the US investigation and its impact on the Adani group are uncertain, we expect risks to APSEZ to be manageable in the near term,” Fitch said in its commentary on Monday.

“We assess the financial profile as stronger than commensurate with APSEZ’s ‘BBB-‘ rating, which is constrained by the Indian (BBB-/Stable) country ceiling of ‘BBB-‘,” it added. It also pointed out that APSEZ charges higher rates than other Indian ports and these rates are justified by its better operational efficiency and hinterland connectivity, which according to the management, reduces the overall logistics costs of the shippers.

Fitch noted that APSEZ’s medium-term investment plan was well developed, with a focus on expanding capacity at key ports to meet demand growth as most major greenfield projects near completion. The plan also includes upgrading ports and improving logistics capabilities such as warehousing, bulk raking and freight transportation, with a budgeted annual investment of around ₹120 billion to 160 billion over the medium term.

While revising the outlook for AESL, Fitch also affirmed the ‘BBB-‘ ratings on the senior secured notes of Adani Electricity Mumbai Limited (AEML) and the AESL-guaranteed senior secured notes issued by AESL’s subsidiary, Adani Transmission Step-One Limited. “The revision to the Outlook reflects Fitch’s view that contagion risks associated with AESL and AEML have diminished. The Adani Group has demonstrated access to diversified sources of financing, despite a US indictment relating to certain directors of a group entity, Adani Green Energy Limited (AGEL), on November 20, 2024. In addition, the Group has continued to invest in projects with capital expenditures expected to continue in the first half of the financial year ending March 2026 (FY26) have increased.” added.

The rating agency also stated that AEML’s additional financing needs are low as cash flow from operations is sufficient to finance the majority of capital investments. The Adani group has not used US dollar government bonds, but access to financing and financing costs are supported by liquidity in the domestic loan and bond market and US dollar funds raised from private placements.

Published on November 4, 2025