Latest News | Fitch Ratings Affirms 'BBB-' Rating on Adani Ports with Stable Outlook

New Delhi, Mar 23 (PTI) Fitch Ratings on Thursday affirmed its 'BBB-' rating on Adani Ports and Special Economic Zone Limited with a stable outlook, saying the Hindenburg report has a limited near-term impact on APSEZ's cost of funding.

Hindenburg Research in a January 24 report accused Adani group of "brazen stock manipulation and accounting fraud" and using a number of offshore shell companies to inflate stock prices.

Also Read | Lok Sabha Passes Budget Envisaging Expenditure of Rs 45 Lakh Crore for FY 2023-24.

The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

"Fitch Ratings has affirmed India-based port operator Adani Ports and Special Economic Zone Limited's (APSEZ) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The Outlook is Stable," it said.

Also Read | Virat Kohli, Anushka Sharma Launch New Non-profit Initiative SeVVA to Help People in Need.

The Hindenburg report alleging significant governance issues for the Adani Group has triggered a sharp fall in Adani Group entities' equity and bond prices.

"The affirmation reflects its view that the Hindenburg report alleging governance issues at the Adani group has a limited near-term impact on APSEZ's cost of funding and access at the current rating level," Fitch said.

The rating agency said it expects APSEZ's financial flexibility to remain supported by its robust portfolio of seaports, which comprises strategically located assets with best-in-class operational efficiency and an adequate liquidity position.

"APSEZ's internal cash surplus is sufficient to cover its near-term operations and debt obligations as well as its budgeted capex," Fitch noted.

According to Fitch, about half of APSEZ's cargo is sticky, which includes contractual take-or-pay cargo, cargo that is unlikely to be diverted to other ports due to infrastructure restrictions, such as the lack of facilities to handle crude oil and cargo from joint-venture partners.

It noted that APSEZ has timing flexibility in its expansion projects.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)