Adani Power Limited (APL) has announced an upgrade of its long-term credit ratings to [ICRA] AA+ (Stable) from [ICRA] AA (Stable) by ICRA Limited. The agency also reaffirmed the short-term ratings at [ICRA] A1+ for its enhanced Term Loan, Working Capital, and Non-Convertible Debenture facilities. This upgrade reflects APL’s sustained operational robustness, financial strength, and expected capacity additions, supported by increased capacity tie-ups under power purchase agreements.
ICRA Upgrades Adani Power’s Long-Term Credit Ratings
Adani Power Limited (APL) has received a significant boost to its credit profile, with ICRA Limited upgrading the company’s long-term ratings. The upgrade sees APL’s long-term ratings move to [ICRA] AA+ (Stable) from the previous [ICRA] AA (Stable) rating. This enhancement underscores the company’s strengthened financial standing and operational performance.
Reaffirmation of Short-Term Ratings and Facility Details
In addition to the long-term rating upgrade, ICRA has also reaffirmed Adani Power’s short-term ratings at [ICRA] A1+. These ratings apply to the company’s enhanced Term Loan, Working Capital, and Non-Convertible Debenture facilities. The total value of the rated facilities amounts to ₹90,500.00 crore.
The specific facilities and their assigned ratings are:
- Long-term Fund-based – Term loan: ₹44,961.70 crore, rated [ICRA] AA+ (Stable), upgraded.
- Long-term Fund-based working capital: ₹15,050.00 crore, rated [ICRA] AA+ (Stable), upgraded.
- Short term – Non Fund based- Bank Guarantee: ₹7,988.30 crore, rated [ICRA] A1+, reaffirmed and assigned for an enhanced amount.
- Non-Convertible Debentures: ₹7,500.00 crore, rated [ICRA] AA+ (Stable), upgraded.
- Proposed Non-Convertible Debentures: ₹3,500.00 crore, rated [ICRA] AA+ (Stable), upgraded.
- Proposed Non-Convertible Debentures: ₹11,500.00 crore, rated [ICRA] AA+ (Stable), assigned.
Factors Driving the Upgrade
The rating upgrade is attributed to Adani Power’s sustained operational robustness and solid financial strength. The agency also factored in the expected capacity additions from the company’s ongoing projects. Furthermore, the ratings are supported by an increase in capacity tie-ups under long-term and medium-term Power Purchase Agreements (PPAs), APL’s various competitive advantages, and a diversified counterparty profile.
Source: BSE
