Adani Green Energy Credit Rating Gets 'Stable' Outlook From Multiple Rating Agencies

Global rating agency Fitch and its local 100% subsidiary India Ratings are bullish and have upped the credit ratings of Adani Green Energy Ltd. on strong execution scale-up and credit profile among others.

Fitch Ratings has assigned a 'BBB-' rating to Adani Green Energy Ltd. Restricted Group 1's 18-year fully amortising senior secured notes, due in 2042, on a strong credit profile. The rating agency also has a stable outlook for the Adani Group company.

The notes are issued by Adani Green Energy Ltd. Restricted Group 1 and consists of three Adani Green Energy Twenty-Three Ltd. subsidiaries: Parampujya Solar Energy Pvt., Prayatna Developer Pvt. and Adani Green Energy (UP) Ltd.

The rating reflects the post-refinancing credit profile of AGEL RG1, which operates solar generation assets across India, with a combined capacity of 930MW, Fitch said in a note on May 30.

The rating is underpinned by long-term fixed-price power purchase agreements, commercially proven technology, experienced operations and maintenance contractors, and an adequate financial profile, the rating agency said.

India Ratings, meanwhile, upgraded the Adani-owned company's long-term issuer rating to 'IND AA-’ from ‘IND A+’ with a stable outlook.

The upgrade comes as a result of the company's strong execution scale-up, healthy counterparty diversification and reduction in receivables, the rating agency said.

The upgrade also reflects AGEL’s change in policy with respect to the leveraging of the holding company, as the company has now earmarked funds towards the repayment of $750 million holding company bond, it said.

The ratings also reflect IndRa’s expectation of favorable operational to under-construction book ratio, it said.

Disclaimer: NDTV is a subsidiary of AMG Media Networks Limited, an Adani Group Company.