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Moody's Revises Outlook on Adani Abbot Point Terminal

Coal News - Published on Wed, 27 May 2020

Image Source: Adani Abbot Point Terminal
Moody's Investors Service has revised the outlook on Adani Abbot Point Terminal Pty Ltd's ratings to stable from positive and affirmed the Ba2 senior secured ratings. Moody's Senior Vice President Arnon Musiker said "The outlook revision to stable considers the weakening operating conditions and rising environmental, social and governance risks facing AAPT's coal mining counterparties. Weakening coal industry conditions and declining investor appetite for the coal sector are increasing the risk that existing coal miners in AAPT's service area will not undertake sufficient investment to maintain their production over the medium to long term. Such a scenario will in turn challenge AAPT's ability to renew its take-or-pay contracts with these mines over time.”

Moody's said it understands that certain miners are contracting for tonnage with AAPT on a shorter-term basis, which potentially raises the terminal's exposure to volume risk and cyclical factors to the extent they are not converted into long term contracts.

AAPT 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 the state-owned lessor, North Queensland Bulk Port Authority.

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Posted By : Yogender Pancholi on Wed, 27 May 2020
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