Moody’s Investors Service has given a negative outlook Baa3 rating to the proposed USD senior unsecured bonds issued by Adani Ports and APSEZ, India’s largest port developer and operator with an annual capacity of 426 million tons.
At Baa3, the issuer rating and the ranking of current senior unsecured bonds in APSEZ remain unchanged.
“The ratings outlook is negative,” Moody’s said in a statement.
APSEZ will use the majority of the proceeds to refinance its current debt and/or that of its subsidiaries, which may include Krishnapatnam Port Company Ltd, subject to completion by APSEZ of its acquisition.
The company will use the remainder of the proceeds for other general business purposes.
The bonds would represent a senior unsecured liability and rank jointly with all current and potential unsecured and unsubordinated liabilities of APSEZ.