S&P Global Affirms Adani Green Energy Rating Amidst Turmoil, Removes Company from Observation
Despite recent turmoil in the Adani Group, Adani Green Energy has received a stable rating of ‘BB+’ from S&P Global, with the American credit rating agency also removing the company from under-criteria observation. S&P Global expects Adani Green Energy’s restricted group, which includes three entities, to assist in meeting repayment obligations due to its strong reserving mechanism.
Adani Green Energy’s restricted group 2 comprises Wardha Solar (Maharashtra), Kodangal Solar Park, and Adani Renewable Energy (RJ). The RG2 are the co-issuers and co-guarantors of Adani Green’s $362.5 million in green bonds, which have a maturity of 20 years and a weighted average life of 13.47 years.
According to media reports, S&P has stated that RG2’s debt is fully secured with cash flow waterfalls that prioritize operating expenditure and debt service in times of disruption. S&P believes the structure sufficiently protects investors, taking into consideration their ring-fenced assets.
S&P believes that Adani Green Energy’s RG2 is currently not impacted by the governance risks and funding challenges that the larger Adani Group is facing. This rating follows Fitch Ratings’ affirmation of Adani Transmission’s restricted group’s notes at ‘BBB-‘ with a stable outlook the day before.
On the BSE, Adani Green Energy’s share price closed at ₹486.75 apiece, a 5% lower circuit, while Adani Transmission closed at a 5% lower circuit at ₹711.90 apiece on Friday. It is noteworthy that the revision in S&P’s criteria does not impact the rating agency’s assessment of Adani Green Energy’s creditworthiness.
About Adani Green:
Adani Green Energy Limited, incorporated in 2015, is a holding company of several subsidiaries carrying business of renewable power generation within the group and is primarily involved in renewable power generation and other ancillary activities.
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