New Delhi [India] March 12 : Fitch Ratings has revised the outlook of four Adani group companies to Stable from Negative and affirmed the ratings at 'BBB-'.

The four infrastructure companies of Adani group whose ratings are revised upward are Adani Green energy limited (AGEL), Adani International Container Terminal Private Limited's (AICTPL), Adani Green Energy Limited Restricted Group 2's (AGEL RG2) and Adani Energy Solutions Limited restricted group's (AESL RG).

Fitch has also removed the Rating Watch Negative (RWN) and taken rating action on two Adani group companies. Mumbai International Airport Limited's (MIAL) affirmed at 'BB+' with a Negative Outlook; and North Queensland Export Terminal Pty Ltd's. affirmed at 'BB+' with a Stable Outlook.

Fitch's decision on ratings follows showing adequate funding access by Adani group entities since certain board members of Adani Green Energy Solutions were indicted by US court on November 20 2024.

Fitch says, "We believe the risks associated with the group's liquidity and funding requirements have moderated, which is reflected in the successful refinancing of NQXT's AUD329 million term loan due in June 2025 through a private placement ahead of its maturity. At the group level, AGEL has also raised long-term onshore funding to refinance its USD1.1 billion construction-linked facility, which was due in March 2025."

Fitch adds stable outlook on AGEL RG1, AGEL RG2, AESL RG and AICTPL reflects limited downside risks, particularly from the contagion effects of the US investigation, given the structural protection and absence of refinancing risk under their debt structure.

The bonds are supported by the structural protection in place, including ring-fencing, a cash flow waterfall, and distribution and indebtedness restrictions that safeguard bondholders from any material negative implications from the outcome of the US investigation.

The group has continued to renew hedging contracts and raise funding without any material increase in costs to date.

AGEL RG1's, AGEL RG2's and AESL RG's long-term offtake contracts, relatively stable operating cash flow and absence of refinancing risks limit any material negative impact from group-related risks.

The Negative Outlook on MIAL reflects exposure to contagion risk given its near-to-medium-term funding requirements. MIAL plans to undertake capex to reconstruct Terminal 1 to expand capacity in addition to other planned refurbishments in the next control period in FY25-FY29.
Fitch will monitor the impact of any material adverse development from the US investigation on MIAL's financial flexibility.