Adani Energy's Long-Term Currency IDRs Assigned 'BBB-' Rating By Fitch
The company's smart metering business will drive capex and cash flows, Fitch Ratings said.
Fitch Ratings Inc. gave a 'BBB-' rating for Adani Energy Solution Ltd.'s long-term foreign and local currency issuer default ratings, with a 'stable' outlook.
The rating agency also reaffirmed the AESL-guaranteed 4.0% $500 million senior secured notes that are due in 2026 and 4.25% $500 million senior secured notes due in 2036 at 'BBB-'. These notes were issued by Adani Transmission Step-One Ltd., a subsidiary of Adani Energy Solution.
Availability-linked revenue visibility, a supportive regulatory framework, diversified counterparties and financial profile adjustments are some of the driving factors for the move.
The company's smart metering business will drive capex and cash flows, Fitch Ratings said.
The affirmation reflects the company's business profile, which is supported by a regulated asset base, a payment pooling mechanism for transmission assets, diversified counterparty exposure and an established record of executing and operating transmission projects. Fitch also expects Ebitda's net leverage to remain commensurate with the rating over the medium term.
The rating also reflects that the risks to Adani Energy Solution's funding access and cost from alleged governance issues at Adani Group have eased, it said. This was after the Supreme Court announced that the case does not warrant a transfer of investigation from SEBI in January 2024.
In the last six months, the group has demonstrated sound debt-market access, Fitch Ratings said. Any significant impact on the group from the ongoing investigation would be an event risk, it said.
Adani Energy shares were trading 0.74% down, compared to a 0.78% decline in the benchmark Nifty 50 as of 3:13 p.m.
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