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Fitch Ratings has confirmed that his US$400 million senior secured bond issued by Adani Transmission Limited (ATL RG1) Restricted Group is rated ‘BBB-‘.
“ATL RG1’s credit rating is not directly impacted by India’s Adani Group’s alleged misconduct highlighted in the Hindenburg Research report, as these assets are assigned to it.”
The credit rating reflects availability-based returns for a project company with low technical complexity, reflected in Fitch’s expectations of high availability and stable operational performance.
Offshore bondholders will benefit from robust cash flow mechanisms and arrangements that limit cash to upstream shareholders and limit liabilities, it said.
In fact, the restricted group’s financial profile is stronger than its asset portfolio counterpart with a ‘BBB-‘ rating, reflecting the ratings’ greater headroom at current levels, Fitc
h said. The restricted group includes six joint issuers (Barmer Power Transmission Service Ltd, Chhattisgarh-WR Transmission Ltd, Hadoti Power Transmission Service Ltd, Raipur-Rajnandgaon-Warora Transmission Ltd, Sipat Transmission Limited, and Thar Power Transmission Service Ltd). and one non-publisher. SPV, Adani Transmission (Rajasthan) Ltd (TRL).
There are no material short- to medium-term debt maturities to mitigate short-term liquidity and funding risk, according to rating agencies. Adani Transmission shares closed Thursday for the 11th consecutive month of losses. In all these sessions it was locked into the lower circuits.
Allegations by Hindenburg Research about corporate mismanagement, stock manipulation, debt leverage, and more have rocked the Adani Group, triggering a large-scale sale of its shares. Adani Transmission’s stock has since plunged 73%. Shares on Thursday closed down 5 percent at Rs.749.75.
On Thursday alone, the market capitalization loss of all 10 of his Adani Group shares was his Rs 2 lakh. The combined value of the 10 shares fell by more than 60% to Rs 7.38 crore last month.
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