Moody's assigns Ba2 to Adani notes

Moody's Investors Service said it assigned a Ba2 rating to the $500 million of 5.5-year backed senior secured notes due December 2024, issued by the Adani Green Energy Restricted Group-1 (RG-1). The group consists of three 50%-owned indirect units.

"The Ba2 rating of the U.S. dollar notes reflects the credit quality of RG-1, which in turn is supported by its predictable revenues from a diversified set of projects in India, operating under long-term power purchase agreements with fixed tariffs," said Abhishek Tyagi, a Moody's vice president and senior credit officer, in a press release.

However, RG-1's credit quality also considers the uneven past performance of the restricted subsidiaries' projects over last three years, its high financial leverage and its exposure to financially weak counterparties with a history of payment delays for around 40%-45% of its revenues, the agency said.

"The rating also benefits from RG-1's strong and committed shareholders," added Tyagi.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.