Moody's affirms negative outlook for Adani's Australian coal mine project

Rating could degrade further if debt widens or if it defaults environment norms

Moody's Investors Service has today affirmed Adani Abbot Point Terminal Pty Ltd's (AAPT) Ba2 senior secured and senior secured bank credit facility ratings. The outlook remains negative, said the agency.

AAPT is part of an obligor group that has economic ownership of the Abbot Point Coal Terminal in North Queensland under a 99-year lease with state-owned lessor, the North Queensland Bulk Port Authority. Adani Ports and Special Economic Zone Limited (Baa3 negative) is the ultimate holding company of the AAPT obligor group.

Moody’s said the Ba2 ratings reflect AAPT's indirect exposure to coal commodity risk, although such risk has reduced