Fitch Upgrades Outlook on Adani Ports and Adani Energy to ‘Stable’

New Delhi — Global credit rating agency Fitch Ratings has revised the outlook on Adani Ports and Special Economic Zone Ltd (APSEZ) and Adani Energy Solutions Ltd (AESL) to ‘Stable’ from ‘Negative’, citing the group’s strong access to diversified funding sources and easing contagion risks.

Fitch has also affirmed the ‘BBB-’ ratings on Adani Electricity Mumbai Ltd (AEML)’s senior secured notes and those issued by Adani Transmission Step-One Ltd, a subsidiary of AESL, guaranteed by AESL.

“The Stable Outlook reflects Fitch’s views on easing contagion risk associated with APSEZ, as the Adani Group has demonstrated access to diversified funding sources, despite the November 2024 US indictment relating to certain board members of Adani Green Energy Ltd,” the agency said in its note.

The revision comes amid the group’s continued investment momentum, with capital expenditure rising in the first half of FY26 (ending March 2026). Fitch also noted that the Securities and Exchange Board of India (SEBI), in its September 2025 ruling, found no regulatory violations or market manipulation by the Adani Group, refuting allegations made in a 2023 short-seller report.

Fitch expects APSEZ’s liquidity and funding position to remain solid, supported by robust cash flows, flexible capital expenditure, and sustained access to credit markets.

“We assess the financial profile to be stronger than is commensurate with APSEZ’s ‘BBB-’ rating, which is constrained by India’s Country Ceiling of ‘BBB-’,” the report stated.

APSEZ, India’s largest commercial port operator, handles around 25% of the nation’s seaborne cargo through its 15 operational ports and terminals. Fitch highlighted APSEZ’s geographically diversified operations, advanced intermodal connectivity, and industry-leading efficiency, noting that these strengths have driven steady market share and throughput growth surpassing India’s overall economic pace.

Meanwhile, Adani Energy Solutions’ outlook was also upgraded to ‘Stable’, with its Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) affirmed at ‘BBB-’.

The agency said contagion risks linked to AESL and AEML have eased, citing the companies’ continued access to funding despite the US indictment of certain Adani Group entities.

Since November 2024, Adani Group entities have raised over USD 24 billion from domestic and international lenders. AESL alone borrowed USD 1.6 billion from Indian banks and the rupee bond market, and USD 200 million from foreign banks to fund capital projects.

Fitch also emphasized the group’s strong position in India’s regulated power sector, noting that AEML’s power transmission and distribution operations and AESL’s cost-plus tariff framework ensure stable and predictable long-term cash flows.

While AESL’s tariff-based competitive bidding (TBCB) assets offer slightly lower protection than cost-plus models, their minimal operating costs reduce margin risks, Fitch said.

AESL remains one of India’s largest private-sector power transmission and distribution firms, with projects across 14 states. It holds a 74.9% stake in AEML, which provides power to nearly 85% of Mumbai.

With inputs from IANS