Global credit rating agencies Moody’s and S&P (via press release on January 22, 2024) have both confirmed and elevated the outlook to “stable” for all international market issuances within the Adani complex, issued by diverse companies in the Adani Portfolio.
This ensures a robust credit quality, providing stable and predictable cash flows for all entities within the Adani complex. The Adani Portfolio boasts the highest number of investment-grade (BBB-/Baa3 and higher) rated issuances among private companies in India, equivalent to India’s sovereign rating.
Moody’s, in their press release on February 13, 2024, emphasized the completion of various debt transactions, including refinancing and securing new loans, showcasing the group’s consistent access to debt capital at reasonable costs. Noteworthy equity transactions involving major institutional investors like GQG and Qatar Investment Authority highlighted the group’s continued access to the equity market.
While an ongoing investigation by the Securities and Exchange Board of India (SEBI) poses some uncertainty, the Supreme Court’s decision entrusting SEBI to complete the investigation, coupled with the court’s perspective that there is no apparent regulatory failure attributable to SEBI, has mitigated potential tail risks in a downside scenario.
S&P, in their press release on January 22, 2024, expressed confidence in the conclusion of most regulatory investigations into the Adani Group without evidence of wrongdoing, reducing downside risks. The repayment of promoter loans, linked to share prices, equity, and bank loans raised by various group entities at competitive rates, reflects restored access to funding. Entities like Adani Electricity Mumbai Ltd. (AEML) and Adani Ports and Special Economic Zone Ltd. (APSEZ) were acknowledged for their strong competitive positions, healthy cash flows, and adequate liquidity to meet debt-servicing requirements.
A summary of the rating upgrades is detailed below –
| Issuer Name | RatingAgency | Summary of Rating Action | |
| Rating | Outlook | ||
| Adani Ports and SEZ Limited | S&P | Reaffirmed at BBB- | Upgraded to ‘Stable’ from ‘Negative’ |
| Moody’s | Reaffirmed at Baa3 | Reaffirmed at ‘Stable’ | |
| Fitch | Maintained at BBB- | Maintained at ‘Stable’ | |
| Adani International Container Terminal Private Limited | S&P | Maintained at BBB- | Maintained at ‘Stable’ |
| Moody’s | Reaffirmed at Baa3 | Reaffirmed at ‘Stable’ | |
| Fitch | Maintained at BBB- | Maintained at ‘Stable’ | |
| Adani Electricity Mumbai Limited (subsidiary of AESL) | S&P | Reaffirmed at BBB- | Upgraded to ‘Stable’ from ‘Negative’ |
| Moody’s | Reaffirmed at Baa3 | Upgraded to ‘Stable’ from ‘Negative’ | |
| Fitch | Maintained at BBB- | Maintained at ‘Stable’ | |
| Adani Transmission Step One Limited (subsidiary of AESL) | Moody’s | Reaffirmed at Baa3 | Upgraded to ‘Stable’ from ‘Negative’ |
| Fitch | Maintained at BBB- | Maintained at ‘Stable’ | |
| Adani Energy Solutions Limited Restricted Group 1 – AESL RG1 | Moody’s | Reaffirmed at Baa3 | Reaffirmed at ‘Stable’ |
| Fitch | Maintained at BBB- | Maintained at ‘Stable’ | |
| Adani Green Energy Limited | Moody’s | Reaffirmed at Ba3 | Upgraded to ‘Stable’ from ‘Negative’ |
| Adani Green Energy Limited – RG1 | S&P | Maintained at BB- | Maintained at ‘Stable’ |
| Moody’s | Reaffirmed at Ba2 | Upgraded to ‘Stable’ from ‘Negative’ | |
| Fitch | Maintained at BB+ | Maintained at ‘Stable’ | |
| Adani Green Energy Limited – RG2 | S&P | Maintained at BB+ | Maintained at ‘Stable’ |
| Moody’s | Reaffirmed at Ba1 | Reaffirmed at ‘Stable’ | |
| Fitch | Maintained at BBB- | Maintained at ‘Stable’ | |
The rating actions by both S&P and Moody’s now follow the same outlook that Fitch had reaffirmed as part of their review confirmed in CY2023 and all the international rating agencies now reflect the “Stable” outlook for all issuers within the Adani universe.
Detailed press releases of both agencies can be accessed through the following links.
S&P – https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3114891
About Adani Portfolio
Headquartered in Ahmedabad, the Adani Portfolio is the largest and fastest-growing portfolio of diversified businesses in India with interests in logistics (seaports, airports, shipping, and rail), resources, power generation and distribution, renewable energy, gas and infrastructure, agro (commodities, edible oil, food products, cold storage and grain silos), real estate, public transport infrastructure, consumer finance, defense, and other sectors. Adani owes its success and leadership position to its core philosophy of ‘Nation Building’ and ‘Growth with Goodness’, a guiding principle for sustainable growth. The Portfolio is committed to protecting the environment and improving communities through its CSR programs based on the principles of sustainability, diversity, and shared values.
Further information at www.adani.com.