Archive · 15 Jan 2026
Moody's Upgrades Adani Group Firms' Outlook to Stable
Moody's, a rating agency, has changed its view on two companies in the Adani Group, ATSOL and AEML, from negative to stable.
This means they think these companies will be able to manage their money well and keep their good credit ratings for the next year or so.
They also said another Adani company, APSEZ, will have enough money and a good credit profile.
The companies have plans to spend a lot of money in the next two years, but Moody's believes they will take steps to keep their financial health good.
However, there are some legal issues in the US that could cause problems if they get worse.
Moody's said the companies' ratings won't go up unless India's country rating goes up, but they could go down if the companies' financial health gets worse or if the legal issues cause problems.
Moody's upgraded the outlook for Adani Transmission Step-One Ltd (ATSOL) and Adani Electricity Mumbai Ltd (AEML) to stable from negative, citing expectations of sustained liquidity and financial metrics.
The Baa3 senior secured ratings for ATSOL and AEML were affirmed, along with AEML's (P)Baa3 senior secured medium-term note programme.
AESL's diversified portfolio of regulated transmission and distribution assets underpins its stable operating performance, according to Moody's.
APSEZ is expected to maintain solid access to liquidity and a credit profile in line with its Baa3 rating over the next 12-18 months.
Moody's noted that AEML has predictable cash flows from its regulated electricity distribution business in Mumbai and an improving financial profile following recent deleveraging.
- Who
- Moody's Ratings, Adani Transmission Step-One Ltd (ATSOL), Adani Electricity Mumbai Ltd (AEML), Adani Ports and Special Economic Zone Ltd (APSEZ)
- What
- Moody's upgraded the outlook for ATSOL and AEML to stable from negative, affirmed their Baa3 ratings, and noted APSEZ's solid liquidity and credit profile
- When
- The upgrade was announced on Thursday
- Where
- The announcement was made by Moody's Ratings
- Why
- The upgrade reflects expectations of sustained liquidity and financial metrics supportive of their ratings, along with predictable cash flows and deleveraging
- Companies
- Adani Transmission Step-One Ltd (ATSOL), Adani Electricity Mumbai Ltd (AEML), Adani Ports and Special Economic Zone Ltd (APSEZ)
- Rating Agency
- Moody's
- Current Rating
- Baa3 (Investment-grade)
- Outlook
- Stable
- Expected Financial Metric
- Funds from operations to net debt > 7.5%
- Legal Proceedings
- Ongoing US legal proceedings involving senior executives
- Potential Risks
- Sustained weakening in credit metrics, adverse outcomes from legal proceedings