S&P upgrades its outlook on three Adani Group companies

Synopsis

S&P Global Ratings has revised the outlook for Adani Electricity Mumbai, Adani Ports, and Adani Green Energy, citing sustained operational strength and continued funding access. The agency affirmed the credit ratings of the three entities, upgrading APSEZ to 'Positive' and AEML and Adani Green Group 2 to 'Stable'. This revision reflects improved fundamentals despite ongoing regulatory investigations.

Mumbai: S&P Global Ratings has revised its outlook on three Adani Group entities-Adani Electricity Mumbai. (AEML), Adani Ports and Special Economic Zone (APSEZ), and Adani Green Energy Restricted Group 2-on the back of sustained operational strength and continued access to funding despite regulatory overhangs.

Following its latest review, the agency affirmed the credit ratings of the three entities while revising their outlooks to reflect improved fundamentals.

AEML and Adani Green Group 2 saw their outlooks move to 'Stable' from 'Negative', while APSEZ was upgraded to 'Positive' from 'Negative'. The current ratings stand at 'BBB-' for AEML and APSEZ, and 'BB+' for Adani Green Energy Restricted Group 2.

In November last year, S&P had revised the outlook for the same firms to 'Negative', shortly after the U.S. Department of Justice filed corruption charges against Adani Group chairman Gautam Adani and others. While those charges remain under investigation, S&P noted that there is currently no evidence of material impact on the group's funding access or operational performance.

"We haven't seen any indications that the group companies' funding access or costs have been materially hit by the SEC indictment," the agency said. "Key concessions and power purchase agreements remain intact, and the Adani entities continue to receive approvals across different businesses."

According to S&P, the group has secured over $10 billion in fresh debt in the past six months across Adani Ports, Adani Green Energy, Adani Enterprises Ltd. and Adani Energy Solutions Ltd. This funding constitutes a sizable portion of the around $30 billion debt across group entities as of March 31, 2025, the agency said.

"The terms of the debt are not more onerous and don't have specific reference to the outcome of the SEC case," the agency noted, adding that domestic and international banks, Indian financial institutions, and private credit investors continue to lend to the group. The Adani family also injected $1.1 billion into Adani Green Energy in July.

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