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Adani Group's Moody's Upgrade Signals Financial Strength & Nation-Building Focus

Moody's Ratings has upgraded the outlook to stable for three key Adani Group entities: Adani Ports and SEZ, Adani Transmission Step-One Limited, and Adani Electricity Mumbai Limited. The rating agency reaffirmed confidence in the group's liquidity position, financial discipline, and ability to sustain its investment-grade credit profile over the next 12-18 months. The Adani Group stated this milestone reflects its continued commitment to nation-building and supporting India's transformation. Moody's noted it will continue to monitor proceedings, as negative developments could still affect the group's access to capital and growth objectives.

Key Points: Moody's Upgrades Adani Group Entities' Outlook to Stable

  • Moody's upgrades outlook for three Adani entities to stable
  • Reaffirms confidence in group's liquidity and financial discipline
  • APSEZ, ATSOL, AEML to maintain investment-grade credit profile
  • Group links milestone to nation-building and India's transformation
3 min read

"Reflects our continued commitment to nation building": Adani Group on Moody's upgraded ratings

Moody's Ratings upgrades outlook for key Adani entities to stable, reaffirming confidence in the group's liquidity and financial discipline.

"This milestone reflects our continued commitment to nation-building and India's transformation. - Adani Group"

New Delhi, January 15

The Adani Group expressed confidence on Thursday over Moody's Ratings, which has upgraded the outlook for three of its key entities, Adani Ports and Special Economic Zone, Adani Transmission Step-One Limited, and Adani Electricity Mumbai Limited, to Baa3/Stable.

According to the Adani Group, the upgrade reaffirms confidence in the group's liquidity position, financial discipline, and ability to sustain its investment-grade credit profile. The group stated that this milestone reflects its continued commitment to nation-building and India's transformation, enabling measured growth and supporting the foundations of a stronger future India.

In a post on X, the group said, "Moody's has upgraded the outlook for APSEZ, ATSOL and AEML to Baa3/Stable, reaffirming confidence in the Adani Group's liquidity position, financial discipline and ability to sustain its investment-grade credit profile. This milestone reflects our continued commitment to nation-building and India's transformation, enabling measured growth and supporting the foundations of a stronger future India."

Moody's Ratings has upgraded the outlook of Adani Ports and SEZ, Adani Transmission Step-One Limited and Adani Electricity Mumbai Limited, and reaffirmed the ratings.

The APSEZ would maintain solid liquidity access and a credit profile in line with its Baa3 rating over the next 12-18 months, the rating agency noted. APSEZ's robust financial profile is supported by the discretionary nature of its planned capital spending for growth and to improve access to funding.

The ATSOL and AEML would maintain access to liquidity and a credit profile supportive of their investment grade ratings over the next 12-18 months, it has asserted.

Moody's said it will continue to monitor the proceedings and negative development in the process, if materialised, may still affect the group's access to capital and its ability to deliver on its growth objectives.

Basis above noting, Moody's has upgraded the outlook of Adani group entities: APSEZ - to Baa3/ Stable from Baa3/ Negative; ATSOL OG (basis AESL) - to Baa3/ STABLE from Baa3/ Negative; and AEML - to Baa3/ STABLE from Baa3/ Negative.

The affirmation of ATSOL's senior secured bond ratings reflects the company's close credit links with its wholly owned parent Adani Energy Solutions Limited (AESL) because of AESL's guarantee on the rated bonds and the event of default provisions linked to AESL's insolvency.

AESL's credit profile, in turn, reflects its diversified portfolio of quality transmission and distribution assets, which benefit from supportive regulatory regimes or long-term contracts with fixed tariffs, Moody's said.

The affirmation of AEML's senior secured bond ratings reflects the predictable revenue from its regulated utility business in Mumbai. At the same time, the rating affirmation considers AEML's elevated financial leverage, partly driven by its large capital spending in recent years.

- ANI

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Reader Comments

P
Priya S
Good to see the confidence being restored. After all the noise last year, this upgrade is a testament to the group's financial discipline. Their work in Mumbai's electricity and national ports does contribute to nation-building.
D
David E
While the upgrade is a positive step, Moody's itself says it will continue to monitor proceedings. Investors should remain cautious and look beyond the headlines. The mention of "elevated financial leverage" is a point to note.
S
Shreya B
As a Mumbaikar, AEML's work is visible. Power supply has become more reliable. If this rating helps them get better funding for further infrastructure development, it's a win for the city. Hope the benefits reach the common citizen in terms of stable tariffs.
R
Rohit P
The focus should be on the projects and their execution. APSEZ ports handle a huge chunk of our trade. A stable credit profile means they can keep investing and creating jobs. That's what matters for the country's progress.
K
Kavya N
"Nation-building" is a strong term. While their scale is undeniable, true nation-building also includes transparency and equitable growth. I hope this financial stability translates into broader corporate governance best practices that set an example for all Indian businesses.

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