Rating breather for Adani group

New Delhi: Fitch Ratings has affirmed ‘BBB-’ rating on Adani Green Energy Ltd Restricted Group 2’s $362.5 million senior secured notes (bonds), implying a low risk of default.Assigning a stable outlook, the rating agency said that credit assessment is supported by the company’s 570MW solar portfolio across two Indian states and long-term fixed-price power purchase agreements (PPAs). The Adani Green Energy Limited Restricted Group 2's (AGEL RG2) consists of 570MW of polycrystalline solar projects, a proven technology with a long operating history, a Fitch rating issued on Friday said.

“We regard the operation of these types of solar projects as straightforward and the solar modules are provided by internationally known suppliers,” it said.

It stated that Fitch Ratings has affirmed the AGEL RG2’s $362.5 million senior secured, largely amortising notes due 2039 at 'BBB-'.The Outlook is Stable, it held.

Explaining about rating rationale, it explained that the AGEL RG2’s credit assessment is supported by its 570MW solar portfolio across two Indian states, moderately volatile generation record at portfolio level, long-term fixed-price power purchase agreements (PPAs), commercially proven technology, experienced operations and maintenance contractors, and strong credit metrics.

The restricted group's (RG) financial profile with rating-case debt-service coverage ratio (DSCR) of 1.44x is stronger than that commensurate with a 'BBB-' rating for the asset portfolio, reflecting considerable rating headroom at the current level.