New Delhi [India], January 15 : Moody's Ratings has upgraded the outlook of Adani Ports and SEZ, Adani Transmission Step-One Limited and Adani Electricity Mumbai Limited, and reaffirmed the ratings.
The APSEZ would maintain solid access to liquidity and a credit profile in line with its Baa3 rating over the next 12-18 months, the rating agency noted.
APSEZ's robust financial profile is supported by the discretionary nature of its planned capital spending for growth and funding access.
The ATSOL and AEML would maintain access to liquidity and a credit profile supportive of their investment grade ratings over the next 12-18 months, it has asserted.
Moody's said it will continue to monitor the proceedings and negative development in the process - if materialized - may still affect the group's access to capital and its ability to deliver on its growth objectives.
Basis above noting, Moody's has upgraded the outlook of Adani group entities: APSEZ - to Baa3/ Stable from Baa3/ Negative; ATSOL OG (basis AESL) - to Baa3/ STABLE from Baa3/ Negative; and AEML - to Baa3/ STABLE from Baa3/ Negative.
The affirmation of ATSOL's senior secured bond ratings reflects the company's close credit links with its wholly owned parent Adani Energy Solutions Limited (AESL) because of AESL's guarantee on the rated bonds and the event of default provisions linked to AESL's insolvency.
AESL's credit profile in turn reflects its diversified portfolio of quality transmission and distribution assets, which benefit from supportive regulatory regimes or longterm contracts with fixed tariffs, Moody's said.
The affirmation of AEML's senior secured bond ratings reflects the predictable revenue from its regulated utility business in Mumbai. At the same time, the rating affirmation considers AEML's elevated financial leverage, partly driven by its large capital spending in recent years.