InvestorQ : Do you have any idea why Fitch has placed Adani Ports under negative outlook?
diksha shah made post

Do you have any idea why Fitch has placed Adani Ports under negative outlook?

Answer
image
swati Bakhda answered.
5 months ago
Follow

Let me clarify that Fitch has only reiterated the rating of “BBB-“ on Adani Ports and there is no change in rating. It was just a reiteration of rating of a stock which has its overall rating bound by the sovereign rating of India, which is just above investment grade. The stock of Adani Ports was 1% down but that is more due to the recent concerns over the demat freeze of select investors. Fitch report has some good things to say about Adani Ports.

The report, whiling reiterating the rating has specifically noted that Adani Ports was India’s largest commercial port operator with a very high level of operational efficiency. In addition, it had about 56% sticky cargo, which would not move to any other competing ports. Adani Ports had Rs.5,300 in cash so in terms of cash flows repaying Rs.1,400 crore in FY22 was hardly going to be a major challenge. The rating is circumscribed by sovereign ratings.

2 Views