Fitch Ratings Inc. has affirmed the long-term foreign-currency issuer default rating on Adani Ports and Special Economic Zone Ltd. at 'BBB-' with a 'stable' outlook.
The affirmation reflects Adani Ports' strong business and financial profiles, underpinned by a robust portfolio of seaports and an adequate liquidity position, according to a release on Wednesday.
Refinancing risk has eased after Adani Ports bought back half of its $650-million bond ahead of the July maturity, while cash surplus and internal accruals are sufficient to cover near-term operations and debt obligations, it said.
The agency said Adani Ports benefits from geographically diversified port locations, coupled with best-in-class operational efficiency and sound access to the domestic and international debt markets.
Fitch said the risk of an adverse impact on Adani Ports' funding access and cost amid the investigation into allegations of governance issues at Adani Group have eased after the Supreme Court's judgement that found no regulatory failure.
Rating Sensitivities
Factors that can lead to a negative rating action or downgrade are sustained deterioration in rating-case debt/Ebitda to above 6 times, evidence of material contagion risk from adverse developments at the sponsor level and other group entities and lowering of India's country ceiling to 'BB+'.
Factors that can lead to positive rating action or upgrade are a revision of India's country ceiling to 'BBB', provided the risk to Adani Ports' credit profile from the Adani Group's governance-related issues recedes materially.
Shares of Adani Ports closed 0.10% higher at Rs 1,242.10 apiece on the BSE, compared to a 0.12% advance in the benchmark Sensex.
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