Moody's changes Adani Green outlook to negative from stable

Moody’s changes Adani Green outlook to negative from stable

Moody’s Investors Service on February 10 affirmed the ratings on eight Adani Group companies, including Adani Green. Moody’s has changed the outlook of four Adani Group companies to negative from stable while maintaining the stable outlook on the four other companies.

This development comes amid the Adani Group market rout following the release of the controversial Hindenburg report.

The Moody’s outlook for Adani Green Energy Limited (AGEL); Adani Green Energy Restricted Group (AGEL RG-1) comprising Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited, Prayatna Developers Private Limited; Adani Transmission Step-One Limited (ATSOL); and Adani Electricity Mumbai Limited (AEML), were changed to negative from stable.

Explaining the rationale behind the ratings action, Moody’s said: “The affirmation of AGEL’s senior secured bond rating reflects its predictable cash flow backed by long-term power purchase agreements (PPAs), its large and diversified portfolio of solar and wind generation projects, and its very high financial leverage.”

According to the ratings agency, AGEL’s outlook was changed to negative after taking into consideration the company’s “large capital spending program and dependence on sponsor support, potentially in the form of subordinated debt or shareholder loans, which will likely be less certain in the current environment.”




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