Moody’s upgrades outlook on Adani Group asset pools to 'stable'

The Moody's action follows rating upgrades by other rating agencies

Moody’s Ratings has revised the outlook on several Adani Group asset pools to “stable” from “negative”, signalling growing confidence in their financial resilience even as legal proceedings involving group promoters continue.

The rating agency upgraded the outlook on Adani Green Energy’s Restricted Group (RG) 1 and RG 2 portfolios, Adani Energy Solutions’ RG1 (US Private Placement) assets, and the debt of Adani International Container Terminal Pvt Ltd (AICTPL), a joint venture between Adani Ports and Special Economic Zones (APSEZ) and Terminal Investment Ltd, a subsidiary of global shipping giant MSC. Ratings on all these entities were reaffirmed.

Moody’s kept Adani Green’s RG1 and RG2 ratings at Ba1, noting that both restricted groups — pools of ring-fenced assets used as collateral — continue to demonstrate steady operations and benefit from “fully amortizing debt structures” that do not require external funding. These structural features help insulate the projects from ongoing legal proceedings in the US, it said.

RG1 comprises assets backing $409 million in green bonds, while RG2 supports around $362.5 million in debt. Both are long-term issuances, backed by diversified renewable energy projects housed under multiple special purpose vehicles.

For Adani Energy Solutions, Moody’s reaffirmed the Baa3 rating on its RG1 US private placement. The agency said the credit profile remains stable over the next 12–18 months, aided by predictable operating performance and a ring-fenced debt structure that limits exposure to broader group-level risks.

AICTPL also received a stable outlook, with Moody’s citing its fully amortised debt, the strategic presence of Terminal Investment Ltd, protections under its sub-concession agreement with APSEZ, and the terminal’s substantial role in Mundra Port’s container throughput.

The latest action aligns with similar upgrades issued this year by S&P and Fitch. All three agencies had cut their outlooks in late 2024 after the US department of justice filed bribery-related charges against certain Adani Group promoters and executives. The group has denied the allegations, calling them baseless.

Moody’s said the combination of stable cash flows, conservative debt structures and asset ring-fencing remains central to its improved outlook across the restricted groups.