Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer Default Rating (IDR) of Adani Ports and Special Economic Zone Limited (APSEZ) at ‘BBB-‘. This announcement also included the removal of the company from Rating Watch Negative, while it holds a Negative Outlook due to potential impacts from ongoing US investigations.
This rating comes after the Adani group demonstrated adequate funding access, especially following the indictment of board members from an affiliate, Adani Green Energy Limited. Despite the moderated liquidity risk, Fitch’s concerns linger over the investigations possibly unveiling further corporate governance weaknesses, which could result in negative rating actions.
APSEZ’s rating is backed by a strong business profile, with a diversified seaport portfolio and robust liquidity. Holding a cash reserve of INR77 billion as of December 2024, the company is poised to meet debt obligations of INR66 billion by FY26, alongside funding capital projects. However, governance issues and India’s ‘BBB-‘ Country Ceiling constrain its rating potential.