Moody’s might lower Adani Abbot

Moody's Investors Service said it placed Adani Abbot Point Terminal Pty Ltd.'s (AAPT) Baa3 senior secured and senior secured bank credit facility rating under review for downgrade.

Adani Abbot Point 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 North Queensland Bulk Port Authority. Adani Ports and Special Economic Zone Ltd. (Baa3 stable) is the ultimate holding company of the Adani Abbot Point obligor group.

"The rating action reflects the increasing downside risk for AAPT's credit profile, a consequence of the financial pressures facing the company's coal mine counterparties from challenging coal market conditions," Moody's analyst Mary Anne Low said in a news release.

"The ongoing severe pressure facing the coal sector translates into an increased probability of AAPT's counterparty contracts, the sole source of the company's revenue, either not being renewed or subject to early termination."

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