Icra downgrades outlook on Adani Ports, Adani Total to ‘negative’
Icra revised the rating outlook for two Adani group entities — Adani Ports and Special Economic Zone Ltd (APSEZ) and Adani Total Gas Ltd (ATGL) – from “stable” to “negative” on account of the deterioration in the Group’s financial flexibility. The agency, however, affirmed the ratings on the long-term loans of Adani Ports Ltd at “AA+” and of Adani Total Gas Ltd at “AA-”.
This follows a sharp decline in share prices and an increase in the yield of international bonds raised by group entities, after a report on the group was released by US-based short seller Hindenburg Research.
The Group’s strong financial flexibility and APSEZL’s track record of refinancing a large part of debt with borrowings (mostly from overseas debt capital markets)
