S&P rates Adani Transmission, notes BBB-

S&P said it assigned its BBB- long-term corporate credit rating to Adani Transmission Ltd. (ATL) and its BBB- long-term issue rating to the company's $500 million 4% senior secured notes due 2026 and Rs. 5 billion 9.1% senior secured notes due 2021.

The outlook is stable.

"The rating on ATL reflects our expectations of stable cash flows, driven by a favorable regulatory environment, the company's power transmission business, and its good operating record," S&P credit analyst Mehul Sukkawala said in a news release.

"However, the company is dependent on two key assets, exposed to somewhat weak counterparties, and has a short track record of operations."

The rating also reflects the agency’s expectation that Adani’s growth aspirations will be moderated by the company's legal and management commitment to limit the investment and support to new projects, S&P said.

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