Adani Ports and its inter-corporate debt problem

The company’s ambitions may have to take a back seat as high levels of debt and loss-making subsidiaries weigh on its credit profile.

On 3 February, S&P Global Ratings revised its outlook on Adani Ports and Special Economic Zone to “negative” from “stable”, citing concerns of increased cost of capital and reduced funding access.

Then, on 3 March, ICRA followed by changing its outlook on the company to “negative”, due to a deterioration in the Adani group’s financial flexibility. The rating agency noted that “the group’s strong financial flexibility and APSEZ’s track record of refinancing a large part of its debt with borrowing [mostly from overseas debt capital markets] of longer tenures at lower interest were the key credit strengths, which have been …


T Surendar

Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.

Executive Editor



Advait Palepu

Advait is a financial journalist and a former writer at The Morning Context. Here, he wrote on India’s banks, the wider financial services industry and the fintech ecosystem. He has previously worked with the Economic and Political Weekly, Business Standard, BloombergQuint and MediaNama, where he covered everything from the Reserve Bank of India to fintech policy.