Adani Power Limited’s (APL) long-term credit ratings for its Non-Convertible Debentures (NCDs) and bank loan facilities have been upgraded to ‘IND AA+’ with a Stable Outlook by India Ratings and Research (Ind-Ra). The agency also affirmed APL’s short-term debt rating at ‘IND A1+’. The upgrade reflects APL’s robust business profile, strong operational performance, and healthy financial flexibility.
Credit Rating Enhancement for Adani Power
Adani Power Limited (APL) has received a significant boost to its credit profile as India Ratings and Research (Ind-Ra) has upgraded its long-term ratings. The Non-Convertible Debentures (NCDs) and bank loan facilities have been elevated to ‘IND AA+’ with a Stable Outlook, an improvement from the previous ‘IND AA’. Concurrently, APL’s short-term debt rating has been affirmed at ‘IND A1+’.
Factors Driving the Upgrade
The upgraded ratings are attributed to Adani Power’s continuously strengthening business profile. Key factors include its substantial contracted operating portfolio, robust fuel security arrangements, healthy operating cash flows, and increased visibility of future earnings from its ongoing expansion projects. The agency also acknowledged APL’s strong financial flexibility and adequate liquidity, even amidst significant capital expenditure commitments for capacity expansion.
New and Affirmed Ratings
Ind-Ra has provided detailed rating actions for APL’s various debt instruments:
- Non-Convertible Debentures (Amount: ₹11,000 Crore): Rated IND AA+/Stable, representing an upgrade.
- Non-Convertible Debentures (Amount: ₹11,500 Crore): Rated IND AA+/Stable, reflecting an assignment.
- Bank loan facilities (Amount: ₹58,000 Crore): Long-term rating upgraded to IND AA+/Stable; short-term rating affirmed at IND A1+.
- Bank loan facilities (Amount: ₹10,000 Crore): Rated IND AA+/Stable, representing an assignment.
Source: BSE
