Fitch Ratings has assessed Adani Ports and Special Economic Zone Limited’s (APSEZ, BBB-/Negative) acquisition of the North Queensland Export Terminal (NQXT) as credit neutral, while recognising the move as a positive step in the company’s long-term strategy of international diversification.
The global ratings agency emphasized that APSEZ’s financial metrics are expected to remain stable following the acquisition. Fitch forecasts gross leverage to hover around 3.0x between FY26 and FY29. Importantly, the acquisition is set to raise APSEZ’s global EBITDA contribution from 4% to 10%, reinforcing its push for global expansion. Although the deal slightly increases coal’s share in APSEZ’s cargo mix, this is anticipated to decline over time as container and non-coal cargo volumes grow.
The acquisition, announced on April 17, 2025, involves APSEZ issuing new equity shares to NQXT’s current shareholders, who are part of the same promoter group. The transaction remains subject to regulatory and shareholder approvals.
Operationally, limited disruption is expected at NQXT, as APSEZ already manages the terminal. With an annual coal throughput capacity of 35 million tonnes and a current utilization rate of 70%, the terminal is not projected to require major capital expenditure in the near term. Long-term take-or-pay contracts and an 85-year remaining lease further ensure steady cash flow visibility.
Fitch also noted that the deal carries minimal refinancing risk. NQXT has no debt maturities until 2030, and its existing debt structure includes conservative safeguards, such as limitations on additional borrowing and controlled cash outflows. These elements contribute to the financial prudence of the transaction.
The significance of Fitch’s assessment lies in the agency’s global influence on investor sentiment, particularly in emerging markets. As one of the world’s leading credit rating agencies, Fitch’s views are closely followed by financial institutions and policymakers. Its characterization of the deal as strategically beneficial, despite being credit neutral, sends a strong signal that APSEZ is bolstering its long-term business profile without endangering its credit health.
In summary, while the acquisition may not trigger an immediate ratings change, Fitch’s analysis reinforces investor confidence in APSEZ’s global growth ambitions by validating the strategic soundness of the move.
