Fitch revises Adani Ports outlook to stable, affirms BBB- rating

Fitch Ratings, the global credit rating agency, has upgraded its Outlook on Adani Ports and Special Economic Zone (APSEZ) to Stable from Negative. This revision applies to APSEZ's Long-Term Foreign-Currency Issuer Default Rating (IDR) and unsecured note rating, which have both been affirmed at 'BBB-'.

The positive revision reflects Fitch's assessment of easing contagion risk for APSEZ, noting that the Adani group has successfully demonstrated access to diversified funding sources.

This access has been maintained despite a November 2024 US indictment related to certain board members of a group entity, Adani Green Energy.

Furthermore, Fitch highlighted the Securities and Exchange Board of India's ruling in September 2025 that concluded the Adani group had not violated regulatory disclosure norms or engaged in market manipulation, as had been alleged in a 2023 short-seller report.

Fitch expects that APSEZ's liquidity and funding will remain consistent with its current ratings. This financial flexibility is strongly supported by its robust cash flows, a strong portfolio of seaports, flexibility in capital expenditure, and proven access to credit markets.

While acknowledging the uncertainty surrounding the timing and outcome of the US investigation, Fitch expects the associated risks to be manageable for APSEZ in the near term.

The agency noted that APSEZ's standalone financial profile is assessed as stronger than required for the 'BBB-' rating, a rating which is currently constrained by India's Country Ceiling of 'BBB-/Stable'.

APSEZ, India's largest commercial port operator, handles a quarter of the country's seaborne cargo through 15 operational ports and terminals. The company benefits from geographically diversified port locations, advanced intermodal connectivity, and best-in-class operational efficiency, which has driven market share gains and throughput growth exceeding that of its peers and India's overall economic expansion.

Approximately half of APSEZ's total throughput is origin-and-destination traffic, which is difficult to switch to alternative ports, contributing to high customer retention.

The company's portfolio is mainly composed of non-major ports, giving it the autonomy to set its own tariffs, which are justified by superior operational efficiency and hinterland connectivity that reduces shippers' overall logistics costs.

APSEZ's medium-term capital expenditure plan is well-defined, focusing on expanding capacity at key ports and enhancing logistics capabilities such as warehousing, bulk rakes, and trucking. The budgeted annual capital expenditure for these projects is approximately ₹120 billion-160 billion over the medium term.