Fitch Ratings Boosts Adani Group Outlook Amid US Court Challenge

Fitch Ratings has upgraded the outlook for four Adani Group companies to 'Stable' from 'Negative' while maintaining their 'BBB-' ratings. The decision reflects improved liquidity and funding management amid US legal issues involving board members. Meanwhile, Mumbai International Airport Limited retains its 'Negative' outlook due to funding concerns.

Fitch Ratings has upgraded the outlook of four key companies in the Adani Group from 'Negative' to 'Stable', affirming their 'BBB-' ratings. This upgrade affects Adani Green Energy Limited (AGEL), Adani Green Energy Limited Restricted Group 2 (AGEL RG2), Adani International Container Terminal Private Limited (AICTPL), and Adani Energy Solutions Limited Restricted Group (AESL RG).

The ratings change comes in response to improved funding access for Adani entities, despite board members of Adani Green Energy Solutions facing charges in a US court in November 2024. Fitch acknowledged the group's successful refinancing of major loans as a factor in the improved outlook, citing reduced liquidity and funding risks.

Mumbai International Airport Limited (MIAL) continues with a 'BB+' rating but retains its 'Negative' outlook, reflecting ongoing funding needs for expansion projects. Fitch has committed to monitoring any developments from the US investigation that could affect MIAL's financial flexibility.

(With inputs from agencies.)