|
Moody's Ratings has upgraded the outlook of multiple Adani Group restricted entities and reaffirmed ratings, citing strong operational performance, fully amortizing debt structures, and ring-fenced project frameworks that reduce funding risks and help them insulate from the ongoing legal proceedings.
Moody's has revised the outlook for (Adani Green Energy Limited) AGEL Restricted Group 1 and AGEL Restricted Group 2 to Ba1/ Stable from Ba1/ Negative. AGEL RG1 comprises of Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited, and Prayatna Developers Private Limited. Whereas AGEL RG2 comprises Wardha Solar (Maharashtra) Private Limited, Kodangal Solar Parks Private Limited and Adani Renewable Energy (Rj) Limited. The ratings agency noted that the change reflects its expectation that the two AGEL restricted groups could maintain credit profiles supportive of their respective Ba1 ratings over the next 12-18 months. Moody's stated, "The outlook change to stable reflects our expectation that the two AGEL restricted groups could maintain credit profiles supportive of their respective Ba1 ratings over the next 12-18 months." The Adani Green restricted groups' performance is supported by their operational stability, fully amortizing debt structures with no external funding requirements, and strong ring-fenced project structures. These factors, Moody's highlighted, will help insulate AGEL entities from the on-going legal proceedings. In a similar development, Moody's Ratings has revised the outlook of Adani Energy Solutions Limited Restricted Group 1 (AESL RG1 - USPP) to Baa3/ Stable from Baa3/ Negative while affirming its rating. AESL RG1 comprises of entities like Barmer Power Transmission Service Ltd, Raipur-Rajnandgaon-Warora Transmission Ltd, Sipat Transmission Ltd, Thar Power Transmission Service Ltd, Hadoti Power Transmission Service Ltd, and Chhattisgarh-WR Transmission Ltd. The agency said the AESL USPP group is expected to continue maintaining a credit profile supportive of its current ratings over the next 12-18 months. Moody's further stated, "The revised outlook reflects our expectation that AESL RG1 will continue to maintain a credit profile supportive of its current Baa3 ratings over the next 12-18 months. This considers AESL RG1's continued stable operating and financial performance, the ringfenced project structure as well as the fully amortizing debt structure with no external funding requirements." Moody's also revised the outlook for Adani International Container Terminal Private Limited (AICTPL) to Baa3/ Stable from Baa3/ Negative and reaffirmed its rating. The agency said that AICTPL's fully amortizing debt structure, presence of Terminal Investment Limited (TiL), and certain rights under its sub-concession with APSEZ, along with its material contribution to container throughput at Mundra Port, will help insulate the entity from the ongoing legal proceedings. Explaining AICTPL's rating rationale, Moody's added, "The outlook change to stable reflects our expectation that AICTPL would maintain a credit profile in line with its Baa3 rating over the next 12-18 months." Moody's further noted that AICTPL's Baa3 rating considers the project's strong operating history, strategic port location with access to large cargo demand, and its close relationship with Mediterranean Shipping Company (MSC) through its 50 per cent shareholder Terminal Investment Limited (TiL), the world's largest container shipping company by fleet capacity. The rating agency also highlighted the solid financial profile for AICTPL over the next 2-3 years and the reserving mechanism in place under its financing documents to cover back-ended scheduled amortization for the rated bond. (ANI)
|
