Global ratings agency Moody's today downgraded the rating for Adani Abbot Point Terminal Pty Ltd's (AAPT) secured bank credit facility to 'Ba2' from 'Baa3' on material volatility in cash flows. The outlook on the ratings is negative. Adani Ports and Special Economic Zone Limited (Baa3 stable) is the ultimate holding company of the AAPT obligor group. Moody's said the ratings downgrade reflects the increasing likelihood of material volatility in AAPT's cash flows. This is due to the weakened position of AAPT's coal mining counterparties, the sole source of such cash flows.
The rating action concludes the review for downgrade initiated on 21 December 2015.