Fitch has also affirmed the ‘BBB-‘ ratings on Adani Electricity Mumbai Limited’s (AEML) senior secured notes and the AESL-guaranteed senior secured notes issued by AESL’s subsidiary, Adani Transmission Step-One Limited.
“The Stable Outlook reflects Fitch’s views on easing contagion risk associated with APSEZ, as Adani group has demonstrated access to diversified funding sources, despite the November 2024 US indictment relating to certain board members of a group entity, Adani Green Energy Limited,” Fitch Ratings said in its note.
The Adani Group continues to invest in projects, with capex picking up in the first half of the financial year ending March 2026 (FY26). In addition, the Securities and Exchange Board of India ruled in September 2025 that Adani Group did not violate regulatory disclosure norms or constitute market manipulation, as alleged in a 2023 short seller report.
“We expect liquidity and funding to remain commensurate with APSEZ’s ratings, with financial flexibility supported by its cash flows, which are driven by a robust portfolio of seaports, a degree of capex flexibility and demonstrated credit market access,” according to the Fitch note.
It further said that “we assess the financial profile to be stronger than is commensurate with APSEZ’s ‘BBB-‘ rating, which is constrained by India’s (BBB-/Stable) Country Ceiling of ‘BBB-‘. APSEZ benefits from geographically diversified port locations, advanced intermodal connectivity, transportation infrastructure and best-in-class operational efficiency. It has high customer retention for about half its cargo through a comprehensive and advanced infrastructure to handle a variety of cargoes”.APSEZ is India’s largest commercial port operator, handling a quarter of the country’s seaborne cargo through 15 operational ports and terminals, most serving as primary ports of call in their respective regions.APSEZ’s advanced infrastructure, operational efficiency and integrated rail logistics have driven market share gains and throughput growth that outpace peers and India’s economic expansion.
Fitch Ratings also revised Adani Energy Solutions’ outlook to Stable from Negative and affirmed its Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB-‘.
The Outlook revision reflects Fitch’s view that contagion risks associated with AESL and AEML have eased.
Fitch believes the contagion risk from the US investigations has eased for AESL and AEML, considering their demonstrated access to diversified funding sources since the allegations and the lack of a specific direct indictment.
“Adani Group entities have demonstrated adequate funding access despite the US indictment after drawing more than USD24 billion from various onshore and offshore lenders. AESL has borrowed USD1.6 billion from domestic banks and the rupee bond market, and USD200 million from foreign banks since November 2024 to fund its capex,” the Fitch note said.
AESL’s and AEML’s credit profiles benefit from a stable and favourable regulatory environment. Revenue from AEML’s power transmission and distribution segments and AESL’s cost-plus tariff framework assets provide long-term cash flow certainty and stability.
“We believe AESL’s tariff-based competitive bidding (TBCB) framework assets provide less protection than the cost-plus model and are exposed to variations in cost of debt, but minimal operating costs reduce margin risk for TBCB assets,” the note added.
AESL is one of India’s largest private-sector power transmission and distribution companies. It has transmission projects across 14 Indian states and owns 74.9 per cent of AEML, a power transmission and distribution utility covering 85 per cent of Mumbai.
