Fitch maintains 'BBB-' credit rating on Adani Transmission's restricted group notes

24 Feb 2023 , 01:13 PM

Fitch Ratings has confirmed the ‘BBB-‘ rating on the $400 million senior secured notes issued by Adani Transmission Limited’s restricted group (ATL RG1), with a stable outlook.

The global credit rating agency stated that the credit evaluation of ATL RG1 remains unaffected by the accusations of unethical practices at India’s Adani group, as these assets are protected by a ringfence, rendering them separate from the group’s other assets.

The credit rating reflects the project companies’ availability-based revenue and low technical complexity, as evidenced by high availability levels and stable operating performance, which Fitch expects to continue.

According to the statement, investors in the offshore bonds enjoy a strong cash flow system and agreements that limit the flow of cash to shareholders and reduce debt.

In fact, the restricted group’s financial profile is stronger than that of a ‘BBB-‘ rating for the portfolio of assets, indicating significant rating headroom at the current level, stated Fitch.

Six co-issuers – Barmer Power Transmission Service Ltd, Hadoti Power Transmission Service Ltd, Chhattisgarh-WR Transmission Ltd, Sipat Transmission Limited, Raipur-Rajnandgaon-Warora Transmission Ltd, and Thar Power Transmission Service Ltd – and one non-issuing SPV, Adani Transmission (Rajasthan) Ltd – are part of the restricted group (ATRL).

Adani Transmission was trading 5% lower at Rs712.30.

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