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Moody's upgrades Adani's Abbot Point rating to stable from -ve

Press Trust of India  |  Mumbai 

Investors Service today upgraded the ratings on the Adani Group's Australian assets Abbot Point Terminal to stable from negative.

The rating is on the senior secured debt and senior secured credit facility ratings of the company.

Abbot Point Terminal owns Abbot Point Coal Terminal, which is fully held by Adani Ports & Special Economic Zone, in north Queensland under a 99-year lease with state-owned lessor North Queensland Bulk Port Authority.

The rating outlook has been revised upwards to stable from negative to incorporate the company's progress in renegotiating tariffs with its users which, coupled with improved coal market conditions, is strengthening its credit profile and reducing refinancing risk, said as the rationale for the rating action.

The stable outlook incorporates the improved fundamental operating conditions for the company's coal mining counter-parties, particularly given the predominance of metallurgical coal.

The agency thinks that coal prices will remain above the present low levels that prevailed during 2016 which will support shipments from the mines.

expects the company to use the additional cash infusion to the tune of USD 200 million towards debt reduction. The company has AUD 976 million debt maturing in November 2018.

Abbot Point Coal Terminal is situated 25 km north of Bowen in Queensland and is the northern most coal terminal in Australia and is run by Abbot Point Operations.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 17 2017. 16:13 IST