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The negative outlook reflects likely weakening in company s financial metrics as a result of incremental debt
Moody s maintains Baa3 rating on Adani Transmission ANI | Updated: May 08, 2021 15:30 IST
The servicing of ATL s bonds is supported by an obligor group that includes ATL and two of its fully-owned subsidiaries, Maharashtra Eastern Grid Power Transmission Company and Adani Transmission India, which operate four transmission lines of more than 5,000 circuit kilometres.
Over the next two to three years, Moody s expects the group s consolidated funds from operations (FFO)/net debt to decline to between 5 and 6 per cent, relative to the minimum tolerance level of 7 per cent set for the rating.
Moody s Investors Service on Friday affirmed an investment grade rating of Baa3 with negative outlook on senior secured bonds of Adani Transmission Ltd (ATL). According to Moody s global rating scale, obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess speculative characteristics. Thus, Baa3 is an investment grade rating and a negative outlook indicates downward pressure on the issuer. Moody s Investors Service has affirmed the Baa3 senior secured bond ratings of ATL. The outlook remains negative, a Moody s statement said. According to the statement, the servicing of ATL s bonds is supported by an obligor group that includes ATL and two of its fully owned subsidiaries Maharashtra Eastern Grid Power Transmission Company and Adani Transmission (India) Ltd which operate four transmission lines of more than 5,000 circuit kilometers.