Moody's assigns negative rating to Adani Ports' proposed bonds

Moody's Investors Service today said that it has assigned a Baa3 rating to the proposed senior unsecured bonds of Adani Ports and Special Economic Zone Ltd and added that the outlook on the rating is negative.
The issuer rating and the rating of its existing USD 650 million senior unsecured bond remain unchanged at Baa3, it said it a statement.
Adani Ports and Special Economic Zone Ltd (APSEZ) will apply the proceeds of the USD bond issuance for capital expenditure and repayment of existing foreign currency commercial borrowings.
The bonds will represent a senior unsecured obligation and will rank equally with all of APSEZ's existing and future unsecured and unsubordinated indebtedness.

In another statement, Fitch Ratings said that it has assigned APSEZ's proposed senior unsecured US dollar notes an expected rating of 'BBB-(EXP)'.
The agency expects the proceeds to be primarily used for refinancing the company's outstanding secured debt, it said.
The notes are rated at the same level as APSEZ's senior unsecured debt rating as they will constitute direct, unconditional, unsubordinated and unsecured obligations of APSEZ.
The final rating is contingent upon the receipt of final documents conforming to information already received.