MUMBAI, June 14: Global rating firm Moody’s has
revised its outlook on Adani Transmission’s (ATL) rating to
stable from negative mainly on the back of expected
improvement in the company’s financial position over the next
12-18 months.
Moody’s has also affirmed ATL’s Baa3 senior secured
bond ratings, it said in a statement here.
“The change in ATL’s outlook to stable reflects the
expected improvement in its financial position over the next
12-18 months, underpinned by incremental earnings
contributions from the Mumbai integrated utility business
acquired last year and recently completed greenfield
projects,” Moody’s Vice President and Senior Analyst Spencer
Ng said.
ATL, based in Ahmedabad, is the largest private-sector
participant in India’s power transmission market. Last year,
ATL bought the the integrated business of generation,
transmission and distribution for Mumbai of Anil Ambani’s
Reliance Infrastruture for total consideration value for the
deal is around Rs 18,800 crore.
“The change in outlook also considers the partial
equity credit ascribed to subordinated loans from its
promoter, after factoring in recent changes made to the terms
of these instruments,” Ng added.
Over the next 12-18 months, Moody’s expects the
company’s consolidated funds from operations to net debt to
improve to the mid seven per cent range, which is above — but
would remain close to — the minimum tolerance level of seven
per cent set for the bonds’ Baa3 ratings, after factoring in
additional debt to be incurred to help fund capital
expenditure. (PTI)
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